FAAA demands recognition of adviser skill shortage

Mike Taylor

Managing Editor/Publisher, Financial Newswire

20 March 2026

The Financial Advice Association of Australia (FAAA) is continuing to press for recognition of financial advice as a profession suffering an occupational shortage justifying further acknowledgement of overseas qualifications.

The FAAA has used its response to a Jobs and Skills Australia stakeholder survey to argue there exists a shortage of both financial advisers and paraplanners and that the problem has existed since 2019.

In doing so, it has also pointed out that the shortage cannot be measured in terms of advertised job vacancies because of the nature of the issues which have contributed to the problem.

It outlined the following points:

• The decline in adviser numbers, which has not been offset by new entrants.
• The ‘long training gap’ and legislated education and “Professional Year’ requirements, which create a four-year structural lag in workforce supply.
• The rising demand for advice, with millions of Australians seeking, but unable to access professional financial advice.
• The important role of paraplanners in the financial advice ecosystem.
• The consumer and economic consequences of unmet financial advice needs.

The submission notes that the number of financial advisers has dramatically since the start of 2019, following significant regulatory and education reforms and noted that:

• In late 2018, there were ~28,900 qualified professional financial advisers on ASIC’s Financial Adviser Register.
• By mid-2024, this had fallen to ~15,600 and in September 2025, there were fewer than 15,300 practising financial advisers.
• As of 12 March 2026, this number had declined further to ~15,135, representing a 48% reduction in less than eight years.

“This decline is structural, not cyclical. Retirement of older financial advisers, regulatory change driven exits, and the lengthy qualification process for new entrants all contribute.

“Despite this, consumer need for financial advice is rising. The consequence is a widening gap between supply and demand,” it said.

The submission also noted that many universities are delisting onshore financial planning courses due to low enrolments with six courses discontinued during 2025.

The pipeline of new financial advisers remains small:

• In 2023, only 381 new provisional advisers were registered2F 3.
• In 2024, this rose to around 511 new entrants, but far below replacement levels.
• The number of new entrants rose to 569 in 2025.

“With an estimated 700–1,000 advisers retiring annually, new entrant supply is not even keeping pace with the need to replenish the profession to meet consumer needs. However, retiring adviser numbers will not be reflected in job vacancies as some may be sole traders/SMEs who shut their doors or sell their business to another financial adviser or firm – rather than their exit a job creating an open position for someone else to fill.

“The combined loss of experienced professionals, low numbers of new graduates, and scarce Professional Year placement positions means that there are not enough applicants with the qualifications to be registered and employed as financial advisers. This is caused by a long training gap, not a suitability gap.

“This means workforce shortages are set to continue for the foreseeable future. This context should be reflected in the JSA data analysis for skills shortage,” it said.