The Financial Services Council (FSC) welcomes the Government's much anticipated consultation on implementing reforms to the education requirements for professional financial advisers, announced today by the Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino.
The reforms aim to expand the availability of high-quality, safe financial advice for Australians while creating a more sustainable pathway for new advisers to enter the profession.
FSC CEO Blake Briggs said "Reforming the current education framework is an important step toward addressing the sharp decline in adviser numbers and improving access to trusted financial advice. Current education standards are unnecessarily restrictive, creating barriers for both aspiring advisers and existing professionals trying to meet the requirements."
These rigid settings have contributed to a critical shortage of financial advisers, with new entrants to the profession declining from almost 5,000 in 2018 to just over 550 in 2025.
The FSC, along with the Joint Associations Working Group, has long advocated for reform to streamline education standards to attract more new entrants and encourage other professionals to transition into the field. When paired with the Delivering Better Financial Outcomes Tranche 2 reforms, this suite of measures is likely to have a transformative impact on the availability of affordable, quality financial advice for Australian consumers.
The proposed reforms would create a more flexible pathway into the profession while maintaining strong professional safeguards. Prospective advisers would still be required to hold a bachelor's degree or higher, complete core financial advice subjects, undertake a professional year, pass the financial adviser exam and maintain ongoing professional development.
Mr Briggs said "Improving access to trusted, professional financial advice is critical to strengthening consumer protection. When consumers cannot access quality, trusted advice, they become more vulnerable to predatory lead generation and high-pressure sales tactics."
