It has also called for an assessment of whether industry-developed courses and qualifications meet the FASEA education and CPD standard offered by tertiary institutions.

“Education requirements have increased the cost of advice. However, it is important for professional standards to be given time to mature,” the paper reads.

“The FSC supports changes over the medium term to deliver a professional framework that is more inclusive of different qualifications or development pathways that reflect the FASEA standards.”

It comes after Lifespan Financial Planning CEO Eugene Ardino said the exam has created “a lot of self-doubt” particularly in senior advisers during a recent episode of the ifa Show.

“An exam that quite frankly, in many cases, doesn’t have a lot to do with giving advice, a lot of it’s very academic,” Mr Ardino said.

“I did the exam and, my goodness, I was lucky enough to pass and partly it’s because I live and breathe at a licensee level, but I left there scratching my head thinking, ‘Where are these questions coming from?’”

In July, Michael Harrison, chair of dealer group Synchron, revealed during a House of Representatives standing committee that his study in accountancy is not currently recognised by FASEA as a prior education as it was undertaken at the time as a diploma and not a university course.

When asked how many advisers he thinks are leaving the advice industry because of the current FASEA standard, Mr Harrison replied: “I think a lot.

“Just looking at our own records at Synchron, what we’re seeing is a lot of the older guys are moving into mortgage broking because they consider it less onerous, less regulated, they don’t have to worry and there’s no argument about where the commission is going to appear.

“I think that’s an issue. But I think also anyone over the age of about 55 who looks at going back to university to do a degree is saying, ‘It’s all too hard, I’ll find another way.’”