7 September 2023

Recognising experienced financial advisers

The Albanese Government is taking another step towards making financial advice more available and affordable for Australians.

Parliament has passed legislation to deliver on the Government’s election commitment to make it easier for experienced advisers to stay in the industry. Without these measures, thousands of advisers would be forced to leave the industry.

The new legislation will recognise the experience of financial advisers who have who have passed the financial advisers’ exam and have 10 years’ experience and a clean record, without requiring further qualifications.

This will help to address the mess left by the last government which oversaw an industry that lost over 10,000 financial advisers since 2019. Ongoing advice fees also increased by 41 per cent between 2018 and 2021. This left Australians without access to affordable and quality financial advice.

By better recognising the experience of long‑serving financial advisers, the Government is providing a pathway for experienced advisers to remain in the industry. This means that new entrants will have the benefit of their experience through mentoring and supervision, and more Australians will have access to financial advice.

These changes build on our Delivering Better Financial Outcomes package of reforms, aimed at ensuring that the five million Australians at or approaching retirement will have more access to financial advice through their superannuation fund — advice that could make a meaningful difference to their quality of life in retirement.

Together, these reforms aim to address the high cost of advice, while better protecting consumers and bolstering ethical standards.