More than three-quarters of financial advisers have yet to register their qualifications on the Financial Adviser Register (FAR) before the end of this year, according to Adviser Ratings.
The latest quarterly Adviser Musical Chairs report released by the firm stated only 22 per cent of the 15,575 currently registered advisers on the FAR were positioned to meet the December 31, 2025 deadline by holding existing qualifications or carrying the status of a new entrants.
As such, around 12,000 practitioners are at risk of losing their existing adviser status as they have yet to update their FAR records.
“Advisers who failed to [do so] would lose their ability to practice and would need to complete a bachelor’s degree, pass the adviser exam, and undergo a professional year before resuming practice—all while unable to generate income from providing financial advice,” the report warned.
Of those advisers who had met the requirement to update their details on the register, 2365 held approved degrees listed in the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021, with these qualifications recorded properly on the FAR.
A further 1085 advisers had entered the profession after the Financial Adviser Standards and Ethics Authority had implemented its professional standards obligations at the start of 2019 and they also have met the current reporting requirements.
However, Adviser Ratings noted the remainder were split between those who could be on the register already and those who may still have to undergo further education.
“Seven thousand eight hundred advisers potentially meet the education requirements through the experience pathway—having provided personal advice to retail clients for at least 10 years between January 1, 2007, and December 31, 2021,” the firm said.
“[However] 4100 advisers remain, with six to 12 years of experience, who do not qualify for the experience pathway and must complete their education requirements and have them recorded before the deadline.”
“Recent ministerial announcements about streamlining education pathways for new entrants have caused some confusion, but these changes do not affect existing advisers’ obligation to meet the December 31, 2025, deadline.
“The proposed reforms will only apply to new entrants or those who miss the deadline and need to requalify.”