Education and professional standards for financial advisers

For new entrants, the minimum requirements are:

• Hold an approved bachelor’s degree (or equivalent)
• Undertake a professional year (PY)
• Pass the ASIC financial adviser exam before they can be authorised as a provisional relevant provider and start quarter 3 of their professional year

For existing providers who were not eligible for the experienced provider pathway (and intended to provide personal advice to retail clients on relevant financial products after 31 Dec 2025), they must have:

• Met the qualifications standard (approved bachelor’s degree or higher, or equivalent qualification approved under the Determination) by 1 January 2026
• Passed the ASIC financial adviser exam within the required timeframe for existing providers

Individual who provides personal financial advice to clients:

• Was a relevant provider registered at any time on the FAR between 1 Jan 2016 and 1 Jan 2019, and was not banned from providing advice
• Does not meet the ‘experienced adviser’ criteria

Individuals who provide personal financial advice to clients, and

• Has 10 or more years’ cumulative experience in Australia between 1 Jan 2007 and 31 Dec 2021
• No disciplinary action recorded on the FAR before 31 Dec 2021
• Passed the ASIC financial adviser exam by 1 January 2022 (or 1 October 2022 if eligible for the extension), where required

Individuals who are not existing or experienced advisers.

The Australian Qualifications Framework (AQF) specifies the standards for educational qualifications in Australia. It’s administered by the government and ranges from vocational education to higher education. There are 10 levels of AQF, commonly known as degrees, diplomas and certificates.

AQF ensures national recognition and consistency as well as a common understanding of what defines each qualification.

Each of the 10 levels are defined by a set of learning outcomes that should be attained by a graduate of a qualification at that level. Similar to a university, Kaplan Professional is a registered Institute of Higher Education regulated by the Tertiary Education Quality and Standards Agency (TEQSA), and able to offer AQF Level 7 -10 qualifications, as well as short courses addressing specific training needs that don’t result in an AQF qualification.

*Depending on version completed. May require additional FAS Code of Ethics subject.

To become a fully qualified financial adviser (relevant provider), all new entrants, must also undertake a supervised Professional Year. This covers a period of one year and the participant (provisional relevant provider) must undertake required work activities (at least 1,500 hours) and structured training (at least 100 hours) overseen by a relevant supervisor. The structured training must be completed as a separate activity from work activities.

The PY has been split into quarters to facilitate PY participants transitioning from being directly supervised to being mentored or indirectly supervised.

Find out more about the PY requirements and how Kaplan Professional’s CPD platform Ontrack can assist both new entrants and their relevant supervisor here.

Financial advisers are required to complete at least 40 hours of ‘qualifying CPD activities’ in each CPD year with a minimum requirement in the following areas:

• technical competence – (5 hours)
• client care and practice – (5 hours)
• regulatory compliance and consumer protection – (5 hours)
• professionalism and ethics – (9 hours)

Note: These minimum hours are specified in the CPD Determination. The balance to make up at least 40 hours must consist of qualifying CPD activities. If the adviser (relevant provider) provides tax (financial) advice services to retail clients (qualified tax relevant provider), an additional minimum 5 hours of CPD in tax (financial) advice applies. 

Kaplan Professional is the leading provider in the provision of industry CPD. Our flagship online platform Ontrack provides organisations and individuals with the content, tracking, reporting and consultancy they need to manage and meet their CPD obligations.

The Financial Adviser Examination is a fundamental component of the professional standards all financial advisers (relevant providers) must pass to provide personal financial advice to clients. ASIC has administered the exam since 1 January 2022 (previously administered by FASEA).

A person training to become a financial adviser (relevant provider) must pass the exam after they’ve completed a FAS-approved degree, and before commencing quarter 3 in their professional year.

The exam will test the practical application of advisers’ knowledge in the following competency areas:

• financial advice regulatory and legal requirements
• financial advice construction
• applied ethical and professional reasoning and communication

The exam lasts 3.5 hours and includes reading time of 15 minutes. The exam consists of selected response style questions and is open book for statutory materials.

Read more and book to sit the exam via the ASIC website here.

RG 146 may continue to apply to existing advisers. Existing advisers should confirm these requirements with their licensee.