Does association membership still matter?

Financial advice in Australia has been through a period of enormous change.

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Over the past decade, advisers have faced extensive regulatory reform, increased education and professional standards, and continued scrutiny from government, regulators and the community. The impact on the profession has been immense, not least on the number of advisers which grew to around 28,000 in 2019 before falling to around 15,000 today.

Given these changes, does membership of a professional association still matter?

Membership of an association is not compulsory, and a review of ASIC’s Financial Advisers Register (FAR) dataset early in February, cross-referenced against Financial Advice Association Australia (FAAA) membership data, suggests that almost 5000 advisers, or approximately one-third of current advisers, appear not to belong to any association.

The value of financial advice

At a time when the cost and accessibility of professional financial advice are under intense scrutiny, it is essential not to lose sight of the fundamental value that quality financial advice provides.

Financial advice is, at its core, about trust. It involves helping Australians make informed and confident decisions about their money at every stage of life, from their first job, to buying a home, raising a family and preparing for retirement.

We know that from our own research, 'The Value of Advice', that Australians who receive professional advice are more likely to save, invest appropriately, and manage debt effectively.

The value of advice extends well beyond numbers, helping people navigate life's inevitable financial shocks and feel more confident about their financial future and wellbeing.

But this value can only be realised if advice is trusted, professional and sustainable.