Last week, Australia’s big four banks and AMP announced they were requiring higher standards of the financial advisers.

AMP was first, telling its 3800 advisers that within five years they all must either hold CFP accreditation, Fellow Chartered Financial Practitioner accreditation or a masters in financial planning.

Then ANZ, Westpac and NAB confirmed they were making similar moves – NAB said it would require advisers to hold a relevant degree and an advanced diploma in financial planning, or be working towards one.

Westpac said it had embraced CFP status for its advisers and ANZ said it was moving towards CFP as the standard.

CBA said senior advisers would have to be CFPs by 2017, or working towards it.

The moves are designed to shore up public confidence in the sector, which has taken a hit. A Senate inquiry report in June included allegations of fraud, forgery and a management cover-up within CBA's advice division. Macquarie Group was forced to write to all the customers it had ever had because they might have received sub-standard advice.

IFA chief executive Fred Dodds said he did not expect to see similar changes implemented in New Zealand immediately.  “But as sure as night follows day, in time that will happen.”

He said a lot of advisers had to upskill when the Financial Advisers Act came into force, which was hard for some who had not studied for a long time. Many had not done any further study since.

“They did it but that’s all they did. For investment advisers, where do they go after that? Massey. For lots of guys that’s a step too far… and the 1900s RFAs did not have to do anything at all.”

He said AFA status should be a “ticket to the game”.  “A risk adviser doing a comprehensive risk programme for a client, how much trauma, TPD they need is more complex than which KiwiSaver scheme they should go in. I’d like to think that RFAs would at least go through level five. Why not get them to do CPD as well? I’m not having a crack at risk advisers, but someone who does that should be seen as a professional, they should be able to say to clients that they’ve done study and have to do CPD.”