Financial Adviser Education Requirements: 120 Advisers Still Face Compliance Deadline

Australia's financial advice industry continues to contract following the latest education and experience compliance deadline, with 120 advisers still requiring action to meet regulatory standards as of early 2026.

Key Compliance Figures

Recent data from Padua Wealth Data and Professional Planner reveals that 120 advisers remain who either lack appropriate tertiary qualifications or have flagged they qualify for the 10-year experience pathway. The majority of these advisers—105 of the 120—operate within licensees managing fewer than 10 advisers, highlighting the disproportionate impact on smaller practices.

The breakdown shows 35 single-adviser licensees affected, with 15 two-adviser operations and varying numbers across slightly larger firms. This concentration in smaller licensees raises questions about the sustainability of boutique advice practices under the current regulatory framework, particularly in specialist areas like personal insurance advice where professional policy review requires deep technical expertise.

Industry Contraction Accelerates

Since 1 December 2025, 504 advisers have ceased providing services, whilst only 47 new entrants have joined the industry in 2026. This represents a continuation of the dramatic industry consolidation that began following the Hayne Royal Commission, which initially listed approximately 33,000 registered advisers. By the final adviser exam deadline in September 2022, this number had dropped to fewer than 16,000 advisers on the Financial Advisers Register (FAR).

The shrinking adviser population has significant implications for Australian families seeking specialist insurance guidance. With fewer qualified advisers available, many families navigate complex decisions around life insurance, income protection and TPD cover without professional support, potentially leaving them with coverage gaps they don't know they have or paying loyalty tax on outdated policies.

Experience Pathway and Regulatory Action

The experience pathway, introduced by former Financial Services Minister Stephen Jones, requires 10 years' cumulative experience between 2007 and 2021 alongside a clean disciplinary record as of end-2021. However, ASIC has warned that some advisers may be incorrectly relying on this pathway.

Advisers who still qualify to provide advice but failed to update the FAR within the 30-day deadline face late fees, whilst ASIC continues enforcement activities across the sector.

Looking Ahead

The industry now awaits Labour's proposed expansion of education standards, which would broaden the range of acceptable relevant degrees. As adviser numbers continue declining and compliance pressures mount, the financial advice landscape appears set for further transformation throughout 2026.

For Australian families reviewing their insurance arrangements, the contracting adviser pool makes it increasingly important to work with established, compliant practices. Arrow Equities maintains full AFSL licensing (526688) and provides comprehensive insurance premium review services to help families navigate policy optimisation despite the evolving advice landscape.

This article contains general information only and does not constitute financial advice.

Finer Market Points Pty Ltd, CAR 1304002, AFSL 526688, ABN 87 645 284 680. This general information is educational only and not financial advice, recommendation, forecast or solicitation. Rose Bay Equities accepts no responsibility for the accuracy or completeness of information provided.