Transitional requirements
In 2019, the professional standards framework commenced for all new and existing financial advisers. Existing financial advisers have been provided transitional pathways to meet the required education standards if they meet the eligibility criteria to be an ‘existing provider’.
A financial adviser is an existing provider if they were:
- Authorised to provide personal advice to retail clients on relevant financial products at any time between 1 January 2016 and 1 January 2019 (i.e. meets the definition of ‘relevant provider’ in section 910A of the Corporations Act during that time frame).
- Not banned or disqualified on 1 January 2019.
- Not the subject of a court-enforceable undertaking on 1 January 2019.
To comply with the education standards and be eligible to continue to be authorised from 1 January 2026, existing providers must:
- Pass the financial adviser exam.
- Complete an approved degree and/or approved bridging courses as specific by the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021.
These transition provisions are set out in section 1684A of the Corporations Act 2001 and the exemption for existing providers from the requirement to complete a professional year of training is set out in 1684C.
The only exception to meeting these requirements is if the existing financial adviser instead meets the requirements under the experienced provider pathway.
ASIC’s timeline for the reforms provides further information on relevant dates and obligations.
What if I cease to be authorised on or before 1 January 2026?
If a financial adviser who meets the definition of a relevant provider (see above) ceases to be authorised on or before 1 January 2026, section 1984A(2) outlines that they can meet the education and training standard (set out in section 921B) by:
- Completing an approved degree (technically meeting the standard in 921B).
- By completing courses the minister has determined to give existing providers equivalent qualifications (the existing adviser pathway).
There is no specified time limit on when the study must be completed so long as the financial adviser is not authorised on 1 January 2026, the study can be completed at any time.
After 1 January 2026, an existing financial adviser must have completed the required study before they can become authorised again.
A word of caution
Importantly, there is a caveat to these conditions.
AFS licensees can set their own education standards, provided they comply with the legislated requirements. This could mean, for example, an AFS licensee requires the completion of specific qualifications to be authorised that exceed the legislated requirements or have a time frame in which it will accept the completion of ‘approved qualifications’.
Post 1 July 2026, it is also likely that approved education providers may wind back or cease offering approved bridging units.
If a financial adviser who is an existing provider fails to complete their required study and is authorised on or after 1 January 2026, they not only lose access to the existing adviser pathway and the professional year exemption, but their authorisation as a relevant provider also becomes void (section 1684D).
The current education standards have been the subject of several consultations in recent years, indicating there is a chance they may be revised in some manner in the future. This is another factor financial advisers should monitor if they are considering a break from being authorised.
For those who will continue to be registered into 2026, time is running out. You need to ensure that you will meet the education requirements as they apply to you. Don’t leave it to the last minute.
