Where are the missing third of ASIC exam passers?

While the profession struggles to keep up with strong demand for service, a third of people who have passed the ASIC adviser exam aren’t actively practising, so where is this missing third?

In accordance with the Corporations Act, anyone wishing to provide financial advice in Australia must successfully complete the exam. Previously administered by the Financial Adviser Standards and Ethics Authority (FASEA), ASIC took over the exam as of 1 January 2022. Since then, some 20,546 candidates have passed the ASIC exam with a 68 per cent pass mark for the last exam in August .

However, according to an analysis from Padua Wealth Data, some 5,159 (33.5 per cent) of those who have passed the exam aren’t actively practising advice. Notably, this portion has grown in the last year, increasing from 28.1 per cent in August 2024 to 33.5 per cent in August 2025.

Speaking with Money Management, Joel Ronchi, who coaches advisers with their exam preparation, speculated that this missing third is likely driven by aspiring advisers who are taking on the exam before their professional year (PY). Back when FASEA administered the exam, only existing or those registered as a PY were able to sit the exam, but this rule changed when ASIC took over.

“Anyone who’s a new entrant to the industry, they don’t have to wait until they’re in their professional year to sit the exam. So that’s opened up a whole opportunity for people to do the exam before even contemplating the professional year,” Ronchi said.

“The vast majority of people who come to me are associate advisers. They’re working in a practice, usually in a support role, but a non-advice support role. A lot of people are also CSOs, people from compliance.”

In order to transition from Q2 of the PY, individuals are required to pass the adviser exam. As a result, those who fail to pass find themselves unable to progress until they are successful, which can put a considerable drag on their career progression given the three-month gap between sittings.

“I always encourage people to do it early because what ends up happening is, when people complete the exam, they actually make themselves more attractive to potential employers because it’s one less hurdle that the employer has to worry about. Also, if you finish the exam or pass the exam before you start your professional year, you won’t hold up your professional year,” Ronchi said.

“It makes their career pathway a lot stronger because it ticks a mandatory box, but it also demonstrates to the industry and potential employers that they’re serious about a career in financial advice.”

Adding to this discussion, Padua Wealth Data founder Colin Williams suggested paraplanners could be another source of these 'missing' candidates as they are not required to be listed on the FAR but may stilll have taken the exam for their own knowledge.

“There are paraplanners who have sat the exam but don’t provide face-to-face advice so they don’t need to be on the FAR, given there’s a cost involved in that for the firm,” said Williams. 

“I have a fair few paraplanners coming through as well," agreed Ronchi. “Obviously, hedging at changing careers. I’m not surprised at all that a third are not practising, I’m surprised it’s not higher, to be honest.”

Williams also speculated it could sit with those who have changed roles since sitting the exam, either because they have moved out of advice or have lost their job. 

“It could be people who have retired, who have resigned from the role, or people like salaried bank advisers who took the exam but now they have lost their jobs. Others may have lost their job earlier but sat the exam regardless as a way to keep themselves up to date if they want to get another job,” he said. 

Based on those who have undertaken his exam prep course, Ronchi said he had also seen university students, people from outside the industry, and even people from overseas who are looking to move to Australia with the intention of becoming an adviser in the future.