Increasing Number of Qualified Financial Advisers Opt Out of Practice
Increasing Number of Qualified Financial Advisers Opt Out of Practice
1
Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice.
As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior.
Colin Williams, WealthData's principal, highlighted the lack of new names on the Financial Adviser Register despite 157 candidates passing the recent exam—20 fewer than the numbers from March and eight less than June 2024. Although there was a net increase of 17 advisers this week, the overall net change for the year remains noteworthy, with a calendar YTD decline of 158 yet an increase of 122 in the financial YTD 2025/26.
This period saw 36 licensee owners achieving a net gain of 47 advisers, while 23 experienced net losses, resulting in a contraction of 36. This dynamic environment also recorded 16 new entrants and 94 advisements (appointments and resignations).
The need for financial advice remains, yet the choice of many to refrain from practice raises questions about the demands or barriers within the sector. This requires attention from industry stakeholders to address potential issues within the licensing and practice ecosystem.
The decision by a third of qualified advisers not to enter practice holds significant implications for the financial planning sector in Australia. For financial institutions and advisory firms, the declining numbers might lead to increased workloads for existing advisers and potentially limit access to financial advice for consumers.
This trend may prompt businesses to reassess the attractiveness of financial advising careers and the structures that support advisers transitioning from qualification to active practice.
Industry analysts suggest that further examination into the structural, economic, and educational barriers hindering new entrants is vital. Without addressing these issues, the industry may face challenges in sustaining a robust advisory pipeline, impacting consumer access to financial advice.
There is also an opportunity for professional bodies and regulatory authorities to explore solutions that might encourage more qualified individuals to pursue a career in financial advising, potentially including mentorship programs, support networks for newcomers, and refined licensing processes.
As the sector evolves, the fluctuation in adviser numbers underscores the need for dynamic strategies to adapt to these industry shifts, ensuring that financial advisory services remain effective and accessible across Australia.
Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice. As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior. - read more
The Reserve Bank of Australia (RBA) recently surprised many by maintaining the interest rate at 3.85%, against expectations of a cut. This decision is seen as a measure to continue moderating inflation, but it simultaneously delays potential spikes in the housing market, providing a favorable window for prospective homebuyers. In particular, Melbourne's current market presents significant value, offering a promising opportunity for those looking to enter the property market. - read more
In a recent discussion, James O'Reilly, Director and Financial Planner at Northeast Wealth, underscored the benefits that could come from granting financial advisers access to the Australian Taxation Office (ATO) portal. Speaking on The ifa Show, O'Reilly proposed that this access would significantly simplify the services financial advisers provide to clients, particularly at tax time and the end of the financial year (EOFY). - read more
The Reserve Bank of Australia (RBA) has decided to keep the official cash rate steady at 3.85%, taking many by surprise after expectations of a 25-basis-point cut had built up in financial circles. This unexpected move comes amid recent data indicating easing inflation and weaker than anticipated economic growth, conflicting with prior predictions of a cut. - read more
The Reserve Bank of Australia (RBA) is anticipated to maintain its trajectory of incremental interest rate reductions, according to insights from leading financial analysts at ANZ. Recent data from the ANZ-Indeed Australian Job Ads series revealed a rise from 114.8 in May to 116.9 in June, suggesting a potential rebound in job advertisements after previous declines. Despite a stable unemployment rate and hours-based underutilisation rate since mid-2024, the Australian labour market remains strained. - read more
Starting a family is one of life's most rewarding experiences, but it also comes with a unique set of financial challenges. For young families in Australia, where the cost of living can rise quickly, having a solid financial plan is crucial. Financial planning is not just about managing money; it's about creating a sense of security and peace of mind for your loved ones. - read more
Investing can initially seem daunting, but it’s essentially the act of allocating money with the expectation of generating an income or profit over time. It's important because investing offers the potential for your money to grow and outpace inflation, ensuring you have a secure financial future. - read more
As young families embark on the journey of raising children, financial planning becomes an essential tool to ensure a stable future. With the rising costs of education and living expenses, it's crucial to put plans in place early. By doing so, families can alleviate stress and focus on what matters most: their children's growth and development. - read more
Budgeting is an essential skill for anyone looking to take control of their personal finances. It serves as the foundation for achieving financial stability and reaching your monetary goals. Yet, managing a budget can seem daunting, especially if you're unsure where to start or how to maintain one. In this article, we'll guide you through crafting a monthly budget that truly works for you, ensuring you not only manage your money effectively but also stress less about financial uncertainties. - read more
Superannuation, commonly known as 'super,' is a crucial part of planning for a comfortable retirement. It serves as a long-term savings measure, gradually increasing in value to support you once you stop working. But what exactly is superannuation? - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Adjustable-Rate Mortgage (ARM): A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.
