Become a financial adviser

A professional standards framework applies to financial advisers who provide personal advice to retail clients on relevant financial products. The framework establishes minimum requirements relating to qualifications, experience, the financial adviser exam, continuing professional development and ethical conduct.

The requirements that apply depend on an individual's circumstances. New entrants generally need to satisfy the qualifications standard, complete a professional year and pass the financial adviser exam. An alternative pathway is available for eligible experienced providers.

Pathways to becoming a financial adviser

New entrants generally need to:

satisfy the applicable qualifications standard
complete a professional year of supervised work and training
pass the financial adviser exam administered by
meet the other professional standards applying to relevant providers, including continuing professional development and ethical requirements.

Eligible experienced providers may instead rely on the experienced provider pathway to satisfy the qualifications and professional year standards.

ASIC's current guidance confirms that new entrants must meet the qualifications standard, pass the exam and complete the professional year before providing unsupervised personal advice to retail clients on relevant financial products.

Qualification standards for new entrants

New entrants must complete a bachelor or higher degree, or equivalent qualification, approved by the Minister before they can become a relevant provider.

The education standards require that new entrants complete an approved qualification at a bachelor’s degree (AQF7 level), graduate diploma (AQF8 level), master’s degree (AQF 9) or an equivalent qualification before they can become a provisional financial adviser.

Before enrolling in a course, it is vital to confirm the course is approved by checking the current legislative instrument.

Degrees approved by FASEA prior to 31 December 2021 remain approved degrees for the purposes of the Corporations Act 2001.

Experienced provider pathway

An alternative pathway is available for certain existing and former financial advisers who meet the requirements to be an experienced provider.

The experienced provider pathway allows an eligible relevant provider to satisfy the qualifications standard and professional year standard without undertaking further education and training for those standards.

Broadly, eligibility is based on having sufficient relevant authorisation during the period from 1 January 2007 to 31 December 2021, together with meeting the applicable disciplinary record requirements.

Advisers seeking to rely on the pathway must make the required written declaration. Australian financial services licensees also have obligations when they receive an experienced provider declaration. Advisers should refer to INFO 281 for the detailed eligibility, declaration and notification requirements.

The experienced provider pathway is an alternative means of satisfying the qualifications and professional year standards. Other professional standards applying to relevant providers continue to apply.

Professional year for new entrants

The professional year of experience must be equivalent to one year of supervised full-time work (1600 hours) working within an AFS licensee, and must include 100 hours of structured training.

During the year of work and training you will be known as either a provisional financial adviser or a provisional financial planner.

A professional year plan must also be implemented to develop the following competencies:

technical competence
client care and practice
regulatory compliance
consumer protection, professionalism and ethics.

A new entrant can commence the third quarter of their professional year once they have completed the applicable qualification, passed the financial adviser exam, completed the first and second quarters of the professional year and are authorised by an AFS licensee to provide personal advice.

Financial Adviser exam

Relevant providers must meet the applicable financial adviser exam requirements. The exam is administered by ASIC.

Exam arrangements, including the format, sittings, registration and preparation materials, may change. Refer to the financial adviser exam information for current requirements.

Ongoing professional standards

Becoming a financial adviser is not limited to satisfying the initial qualification, experience and examination requirements. Relevant providers are also subject to ongoing professional standards, including continuing professional development requirements and compliance with the Financial Planners and Advisers Code of Ethics 2019.

Refer to ASIC's professional standards guidance for the requirements that apply to your circumstances.

Advisers providing tax (financial) advice services

If you are a financial adviser who provides, or intends to provide, tax (financial) advice services to retail clients for a fee, you must be:

a ‘qualified tax relevant provider’, and
listed on the Financial Adviser Register as a relevant provider and registered with ASIC from 1 January 2023.

You will primarily be regulated by ASIC under the Corporations Act (with the Financial Services and Credit Panel operating as the single disciplinary body for all financial advisers who provide personal advice to retail clients on relevant products).

Different requirements may also apply where an adviser provides tax (financial) advice services. A person who is not a financial adviser for the purposes of the retail advice professional standards, for example because they advise wholesale clients only, may need to be registered with the Tax Practitioners Board as a tax agent to legally provide tax (financial) advice services.

For more information visit the ASIC website.

Advisers providing services to wholesale clients

The financial adviser professional standards described above apply to individuals who provide personal advice on relevant financial products to retail clients. They do not apply to a person who provides personal advice on relevant financial products only to wholesale clients.

Different regulatory requirements may nevertheless apply, and advisers and AFS licensees must ensure clients are appropriately classified. Advisers providing tax advice to wholesale clients should also consider the separate requirements applying to tax agent services.