GTA has written to the Australian Treasury seeking clarity on how proposed financial adviser education standards will apply to advisers working in agricultural commodity markets.
GTA is seeking a practical and proportionate framework that recognises the different competencies required to advise grain producers and other industry participants on commodity prices, contracts, hedging and market risk.
A key focus is ensuring relevant industry knowledge is appropriately recognised. GTA has called for broader qualifications, including agribusiness, agricultural economics, commerce, economics, finance, accounting, agricultural science and applied science, to be recognised. It has also proposed that commodity-related subjects, including grain markets, derivatives, hedging, futures and options, foreign exchange and agricultural risk management, should count towards financial concepts requirements.
GTA has also highlighted the specialised nature of grain marketing and commodity risk advice, which can be transactional and production-linked rather than traditional financial planning. It is seeking flexibility for AFS licensees to consider an adviser’s tertiary study, industry experience and additional training against the scope of advice they provide.
Clear implementation guidance is also important, particularly to support consistent application of the new framework and access to specialist advice in rural and regional areas.
GTA is not seeking lower professional standards. It is seeking a framework that appropriately recognises the competencies required in agricultural commodity markets.
Treasury has acknowledged GTA’s concerns and is seeking to work further with GTA and the grain industry as it progresses its reforms.
For further details, read GTA’s submission.
