Experienced Adviser Pathway Becomes Law in Australia

Thousands of financial advisers in Australia, who were prepared to walk away from their careers – rather than obtain a bachelor’s degree – have been thrown a lifeline. Legislation to make it easier for them to continue working in the industry has been passed into law.

Australia’s Minister for Financial Services Stephen Jones, says the new law will recognise the experience of financial advisers “…who have passed the financial advisers’ exam and have 10 years’ experience and a clean record, without requiring further qualifications”.

He adds that without these measures, thousands of advisers would be forced to leave the industry, pointing to the loss of more than 10,000 financial advisers since 2019.

…the Government is providing a pathway for experienced advisers to remain in the industry…

“Ongoing advice fees also increased by 41% between 2018 and 2021. This left Australians without access to affordable and quality financial advice.”

Jones says that by better recognising the experience of long serving financial advisers “…the Government is providing a pathway for experienced advisers to remain in the industry. This means that new entrants will have the benefit of their experience through mentoring and supervision, and more Australians will have access to financial advice”.

Heated debate

Meanwhile the FAAA’s GM of Policy, Advocacy & Standards Phil Anderson acknowledges the issue has generated heated debate in the industry.

The move was first raised by the Minister when in opposition in December 2021. (See: New Pathway for Experienced Advisers Proposed).

Anderson said: “We recognise that this issue has generated heated debate. However, we believe that it is time for the profession to come together and support all those who will continue as financial advisers beyond the 1 January 2026 deadline.”