The Financial Services Council (FSC) has expressed strong support for the government’s recent initiative to overhaul the education requirements for professional financial advisers.
This reform is seen as essential for maintaining the viability and sustainability of the financial advice profession.
FSC CEO Blake Briggs (pictured above) highlighted the positive impact of the government’s commitment.
“The commitment by the government to reform financial advice education standards will streamline regulatory requirements on the advice profession and will ease the way for more people to become financial advisers,” Briggs said.
He said that the existing standards have been overly stringent, posing significant obstacles for both new and existing financial advisers attempting to comply with the regulations.
“The current education standards are unnecessarily restrictive, creating barriers for both aspiring advisers and existing professionals trying to meet the requirements,” Briggs said. “These rigid standards 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 500 in 2024.”
This dramatic decline has been compounded by the withdrawal of financial planning courses and bridging units by several universities, driven by waning demand.
In addition to educational reforms, FSC welcomed the government’s decision to remove the annual requirement for individual advisers to register with the Australian Securities and Investments Commission (ASIC).
This change is expected to significantly reduce the administrative burden on the profession.
The reforms, announced by Stephen Jones, assistant treasurer and minister for financial services, at the Conexus – Advice Policy Summit, aim to streamline the pathway for individuals entering the financial advice sector and are part of broader efforts to reduce overregulation and enhance the profession’s appeal.
“It is why I have spent my time as minister undertaking the largest reform project to financial advice in over a decade,” Jones said.
He reflected on the decline in advisers due to previous government policies and outlined future directions.
“We need to cut unnecessary red tape that is driving up costs without providing a consumer benefit,” Jones said. “And we need to ensure Australians have confidence to seek advice and engage in the financial system.”
FSC, along with the Joint Associations Working Group (JAWG), has been instrumental in advocating for these changes.
Read the media release on the FSC website.
