Licensees have been urged by the Australian Securities and Investments Commission (ASIC) to ensure their advisers’ FAR records are updated, as ASIC’s latest estimates find more than 3,000 advisers could be unable to provide advice next year.
At least 3,459 relevant providers may be affected, ASIC said, and should urgently review the details on the Financial Advisers Register (FAR).
Relevant providers who are also existing providers generally have until 1 January 2026 to meet the qualifications standard under section 921B(2) of the Corporations Act 2001 (Corporations Act) to continue providing personal advice to retail clients on relevant financial products from that date.
As of 16 September, some 7,081 relevant providers hold an approved degree or qualification, 3,966 are relying on the experienced provider pathway, and 926 hold both an approved degree or qualification and are relying on the experienced provider pathway.
This leaves 3,459 who have yet to meet the qualification standard, down from 4,604 in the previous ASIC data in June.
Of this cohort, 1,371 may be eligible for the experienced provider pathway but have yet to notify ASIC of this.
It is up to AFSLs to make the change; relevant providers cannot update their FAR records themselves. Where information is incorrect or out of date, AFS licensees must notify ASIC of the change within 30 business days of the change occurring to avoid a late fee.
ASIC also named common errors it has encountered when it came to licensees updating their advisers’ FAR profiles.
These included:
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The relevant provider has been incorrectly marked as relying on the experienced provider pathway when they are not eligible.
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The relevant provider’s qualifications and training courses have been marked as going towards meeting the qualifications standard, but the course(s) have not been completed or are not an approved course of study.
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The relevant provider has met the qualifications standard, but their relevant qualifications and training courses have not been recorded as “going towards meeting the qualifications standard” on the Financial Advisers Register.
In September, SMSF Adviser’s sister brand, Money Management, covered how as many as 1,000 advisers could exit the profession in light of the new requirements.
Speaking on a webinar, Financial Advice Association Australia (FAAA) chief executive Sarah Abood said the organisation has a high estimate of the number of advisers who could exit.
“Our estimates are that around 1,000 advisers might be leaving at the end of this year. That’s based partly on data and partly on intention surveys that various providers have done. It’s a guess, but it will be a decent dip at the end of this year,” Abood said.
