Time is “rapidly running out” for a critical group of 4,100 advisers if they wish to meet the deadline for their education requirements, according to Adviser Ratings.
According to ASIC, financial advisers who are existing providers have until 1 January 2026 to meet the qualifications standard in the Corporations Act.
This can be met by either completing an approved qualification, by completing qualifications the minister has determined to be equivalent to an approved qualification for existing advisers, or by accessing the experienced provider pathway.
With just 11 months to go, the requirement to update Financial Advisers Register (FAR) records represents a “critical compliance obligation”, Adviser Ratings explained, that could determine many advisers’ ability to continue practising in 2026 and beyond.
The research house’s analysis discovered a “concerning picture” of the industry’s preparation in the lead-up to the deadline, with just 22 per cent of advisers (3,450) definitively positioned to meet the 1 January 2026 requirements through their existing qualifications or new entrant status. This consists of 2,365 advisers who hold an approved degree and have recorded this on the FAR, and 1,085 who entered the profession after the Financial Adviser Standards and Ethics Authority (FASEA) implemented the professional standards obligation.
But one group of 4,100 advisers are particularly affected by the change as they have six to 12 years of experience but do not qualify for the experience pathway and were not new entrants after 2019.
“Therefore, advisers in this group must complete their education requirements and have them recorded on the FAR by the deadline. Time is rapidly running out for these advisers to meet the necessary education requirements.”
The firm described the consequences of missing the deadline as “severe” and could have career-altering impacts for much of the profession as they will lose their existing adviser status resulting in additional requirements before they can practise again. Until these requirements are met, they would be unable to practise or generate income from providing financial advice.
Overall, there are 12,000 advisers remaining who must ensure their FAR records are accurately reported or that they meet the 10-year experience pathway by the end of the year.
Within these 12,000 remaining advisers, there are approximately 7,800 who potentially meet the education requirements through the experience pathway, the analysis found.
This is due to them having provided personal advice to retail clients for at least 10 years between the period of 1 January 2007 and 31 December 2021. However, they are required by ASIC to make a written declaration before 1 January 2026 if they intend to rely on the pathway.
Adviser Ratings also noted these requirements are unaffected by the recent announcement by Minister for Financial Services, Stephen Jones, about streamlining education pathways.
This would see the government remove the requirement for individuals to complete an approved qualification offered by only a limited number of higher education providers. Instead, a new education standard will centre around the requirement to hold a bachelor’s degree or higher in any discipline, it explained, recognising the important role of tertiary education across all disciplines.
Moreover, incoming advisers will need to meet minimum study requirements in areas including finance, economics or accounting, alongside prescribed accredited financial advice subjects covering ethics, legal and regulatory obligations, consumer behaviour, and the financial advice process.
Adviser Ratings said: “The proposed reforms, while promising for the future of the profession, do not provide any relief from the immediate obligation to update FAR records by year’s end (assuming that the required education has been completed).”
