Advice sector sweats on looming exits

The lack of action on the financial adviser shortage continues to frustrate the advice sector, as the pending education standard deadline threatens to make things worse.

- Matthew Wai

According to Rainmaker Information, there were about 15,456 financial advisers on the ASIC register as of June 30, representing a 2.3% year-on-year decrease. The decline is likely to continue, driven by several measures, including the education standards deadline on 1 January 2026.

The government is working with industry leaders to create a "sustainable pathway" for new advisers entering the profession, including a commitment to progressing the Delivering Better Financial Outcomes (DBFO) reforms to make advice more accessible.

The Financial Advice Association Australia (FAAA) wants to see the DBFO reforms implemented but said it remains unclear what that will look like. However, time is running out. FAAA general manager of policy, advocacy, and standards Phil Anderson expects about 1000 advisers to exit at the end of the year. As at June, ASIC said the number was closer to 4600.