Govt agency fails to recognise adviser shortage

The Financial Advice Association of Australia (FAAA) has taken issue with Federal Government agency, Jobs and Skills Australia over once again leaving the occupation of “financial adviser/financial planner” off the Core Skills Occupations List.

The FAAA has written to the agency stating that while ‘paraplanner’ and ‘financial services and investment specialists have been flagged for consultation the financial adviser and financial planner descriptors are “once again absent”.

It said this was despite a decision taken to replace the principle title for “financial investment adviser’ with “financial adviser/planner”.

“This omission is inconsistent with the substantial evidence of skills shortages in financial advice, as already recognised on the National Skills Commission’s Skills Priority List and JSA’s Occupation Shortage List and fails to reflect the vital role financial advisers play in supporting household financial wellbeing, retirement outcomes, and broader economic stability,” the FAAA said.

It said that the FAAA had consistently engaged with Government agencies over the clear shortage of advisers with numbers having declined dramatically since the start of 2019, following significant regulatory and education reforms:

• In late 2018 there were ~28,900 advisers on ASIC’s Financial Adviser Register.
• By mid-2024, at the time of our last CSOL submission, this had fallen to ~15,600.
• As at September 2025, there are fewer than 15,300 practising financial advisers, representing a 47% reduction in seven years.

“This decline is structural, not cyclical. Retirement of older advisers, regulatory change driven exits, and the lengthy qualification process for new entrants all contribute. The impending 1 January 2026 deadline for adherence with the updated educational requirements, looms large as a further cliff beyond which financial adviser numbers will further decline,” the FAAA said.

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

The submission said research has consistently demonstrated substantial and unmet demand for financial advice across Australia noting that without an adequate supply of advisers Australians are at greater risk of poor financial outcomes.

It also pointed to current migration frameworks not adequately recognising the professional year or licensing requirements unique to advisers – something which created barriers for otherwise qualified international professionals”.

“We urge JSA to engage actively with ASIC and Treasury on a model for financial advisers and paraplanners that is fit for purpose. This would include:

• Recognition of the professional year as part of the skills assessment framework.
• Align migration pathways with ASIC’s adviser registration requirements.
• Support targeted migration as a complement to domestic workforce development.