Just over a year after the measures were originally announced, the government has launched a consultation on education requirements that would expand the availability of “high quality and safe financial advice for Australians”.
On 17 March, Financial Services Minister Daniel Mulino announced that the government has launched a consultation on education reform for financial advice.
“We are starting consultation on the government’s reforms to the education standards for financial advisers which will create a sustainable and flexible pathway for new advisers to enter the profession, to help address the decline in the number of advisers over recent years,” Mulino said.
“When consumers aren’t able to access quality, trusted financial advice, they are more susceptible to predatory forms of lead generation and high-pressure sales tactics.”
The new consultation follows former minister Stephen Jones first announcing the reforms in February last year.
Under the proposed reforms, prospective advisers would be required to hold a bachelor’s degree or higher, however it would no longer need to be a prescribed financial advice degree.
“They will also need to meet minimum study requirements in relevant areas such as finance, economics or accounting, along with completing mandatory financial advice subjects covering ethics, legal and regulatory obligations, consumer behaviour and financial advice fundamentals,” Mulino added.
According to the minister, the new policy would complement the work already underway on managed investment schemes and the government’s “broader work on consumer protection in the superannuation sector, which we will begin consulting on soon”.
“Alongside consumers, Australians seeking to work in financial services will benefit by streamlining entry into the industry, while retaining the important role of tertiary education,” he said.
“These reforms ensure continuing robust professional standards for advisers, including requirements for completing a professional year, passing the financial adviser exam and maintaining continuing professional development.”
While there is still no further detail on the Delivering Better Financial Outcomes (DBFO) reforms, which have been languishing in Treasury, it is the first movement on advice legislation since the federal election in May last year.
“The government is committed to delivering a comprehensive package of financial advice reforms that will increase Australians’ access to high-quality, safe and affordable advice,” Mulino said.
Consultation on the proposed education reforms closes on 17 April 2026.
Responding to the news, Financial Services Council chief executive, Blake Briggs, said: “Reforming the current education framework is an important step toward addressing the sharp decline in adviser numbers and improving access to trusted financial advice. Current education standards are unnecessarily restrictive, creating barriers for both aspiring advisers and existing professionals trying to meet the requirements.
“Improving access to trusted, professional financial advice is critical to strengthening consumer protection. When consumers cannot access quality, trusted advice, they become more vulnerable to predatory lead generation and high-pressure sales tactics.”
Speaking last year, Jones said the “cost and time to meet the new standard will be halved for most students who are studying commerce, economics or finance degrees”.
“It means you don’t have to do two degrees,” he said at the time.
“Most kids leaving high school today – and I don’t mean any offence – but they’re not saying to themselves ‘I want to be a financial adviser’.
“The challenge for us is to say how much of that undergraduate degree can articulate into the essential requirements of professional financial advisers, we think we’ve got the balance right there. We don’t tell people they’ve got to go and study another whole degree; we just pick the topics that they need to complement their undergraduate degree.”