Experience may indeed be a great teacher, but as many financial advisers are discovering it accounts for nothing, with a sizable cohort – many with decades under their belts advising clients – failing to meet new qualification criteria.
Based on Rainmaker’s analysis of ASIC’s Financial Adviser Register (FAR), over a fifth (458) of the 2000 who hadn’t met the new qualifications standard by the end of 2025, have ceased their authorisation since the beginning of December.
Adviser numbers virtually halved in six years
Following a massive exodus of professionals over the last seven years, the total number of advisers on the register has fallen from around 28,900 in early 2019 and is currently struggling to stay above 15,000.
One of the key reasons for the financial adviser diaspora from the profession is the more onerous education and compliance criteria.
In addition to a higher barrier to entry, new requirements have made those closer to retirement question whether they wish to jump through hoops simply to remain in a profession they may have been in before many new entrants to the sector were born.
Effective 1 January, new qualification standards mean advisers can no longer provide personal advice if they have not completed a course or qualification on the approved list.
As of 20 November 2025, there were 15,469 relevant providers listed on the FAR.
While 7959 hold an approved degree or qualification, 4212 are relying on the experienced provider pathway, and a further 972 are recorded as both holding a relevant qualification and relying on the pathway.
Further falls expected
While the status of 2326 advisers remains unknown, revelations that less than 850 were eligible for the experienced pathway suggest that register numbers risk continuing to fall.
While the fallout from these new education standards may have fallen short of being catastrophic for the advice sector, Padua Solutions wealth data manager Colin Williams admits that the qualification issue remains tricky for advisers.
"This week's numbers show the adviser market is still volatile. Earlier projections of much larger losses were based on ASIC's 'point in time' data showing many advisers without required qualifications and not applying for the experienced pathway,” said Williams.
"As late as November 20 the situation looked dire, but many advisers updated their records in recent weeks."
Admittedly, 511 new advisers entered the profession in 2024, but over 1000 advisers are understood to have ceased practising in the same year.
Unattractive career choice
New educational requirements aside, the Productivity Commission’s interim Building a skilled and adaptable workforce report, released in August, flagged excessive obligations now confronting the financial advice profession.
The report found that the entry requirements, in particular, are disproportionate to the level of risk, contributing to a decline in the number of financial advisers.
This has, in turn, limited the public’s access to affordable advice.
Meanwhile, the Financial Advice Association Australia (FAAA) predicts a further decline in adviser numbers - estimated to be approximately 1,000 advisers on 1 January 2026 – at a time when the sector is experiencing unprecedented demand.
According to the Adviser Ratings projections, the number of advisers required to meet the increased demand for financial advice [in Australia] is more than 50,000 by 2055.
“Drastic intervention is required, both immediately to meet the current excess demand problem, and over the medium to long term,” the FAAA said.
“For these reasons, the FAAA believes the financial advice profession should be prioritised in any Productivity Commission recommendations.”
Call for greater flexibility
Interestingly, the Australian government is now proposing changes to the education standard – including increased education standard flexibility - removing the requirement to hold an approved qualification focused on financial advice.
It’s understood this could be replaced with a requirement to hold a bachelor’s degree or higher in any discipline, complete a minimum relevant study in areas such as finance, economics or accounting, and complete prescribed accredited financial advice subjects, such as ethics, law and regulatory obligations and the financial advice process.
“We believe that this would be a key reform to broaden the pathway for new entrants to join the financial advice profession and will help to make financial advice a potential occupation for people who have studied at a broader range of universities,” the FAAA’s submission said.
Despite launching the Advice Academy last November - as an initiative to boost adviser numbers - FAAA CEO Sarah Abood admitted that a big part of the problem is having nowhere near enough new entrants.
‘New advisers have ranged between around 300-500 in recent years, which is insufficient to even offset retirements, let alone grow the profession,” she said.
Abood agrees with many of her peers that until recently, the education pathway was considered "unsustainable" and "unattractive" due to its highly restrictive nature.
Not unlike the super industry, the financial advice sector also appears to be plagued with excessive involvement by outsiders, notably policymakers, who neither understand the sector nor its impact on everyday Australians.
Key qualifications and requirements to continue working as a financial adviser include:
1. Education Standards (Ongoing Requirement)
- Approved Degree: You must hold an approved bachelor's or higher degree (AQF7 level or above) or an equivalent qualification, such as a Graduate Diploma in Financial Planning.
- Experienced Provider Pathway: If you have at least 10 years of experience (between 1 January 2007 and 31 December 2021) and a clean record, you may not be required to undertake further study to meet the qualifications standard, but you must still pass the exam and comply with other standards.
2. The Financial Adviser Exam
- All financial advisers (including existing and new) must pass the Financial Adviser Exam (administered by ASIC) to continue providing personal advice to retail clients.
3. Continuing Professional Development (CPD)
To maintain your license, you must complete 40 hours of CPD annually. This must include:
- Technical competence: 5 hours
- Client care and practice: 5 hours
- Regulatory compliance and consumer protection: 5 hours
- Professionalism and ethics: 9 hours
- Remainder: Remaining hours can be in other areas, but 70% of total training must be approved by your Australian Financial Services (AFS) licensee.
4. Registration and Ethics
- ASIC Registration: You must be listed on the Financial Advisers Register (FAR).
- Code of Ethics: You must comply with the Financial Planners and Advisers Code of Ethics 2019, which covers client care, ethical behaviour, and professional commitment.
- Tax Relevant Provider (QTRP): To provide tax (financial) advice services, you must be registered as a Qualified Tax Relevant Provider with ASIC.
5. Professional Year (For New Entrants).
- If you are new to the industry, you must complete a 1,600-hour professional year (including 100 hours of structured training).
Note: For "existing providers" (those authorised between 1 Jan 2016 and 1 Jan 2019), the deadline to meet the new education qualifications was 1 January 2026.