Most Aussie advisers have degree-level qualifications

Most Australian financial advisers hold qualifications at Australian Qualifications Framework (AQF) level 7 or higher, with 85% meeting the standard, according to a new report. The findings reflect the impact of professional standards reforms introduced this year, which set AQF 7 as the minimum requirement for advisers to continue practicing.

Qualifications become the industry baseline

The report, compiled by Rainmaker for the June quarter, found that AQF 8 qualifications—specifically Graduate Diplomas—are now the most common highest credential, held by 35% of advisers. Licensees increasingly view AQF 8 as the benchmark moving forward. AQF 7 stood as the minimum requirement for advisers to continue practising, unless qualified through the experience provider pathway, which recognises long-tenured advisers with a clean record.

A small portion of advisers, 13%, fell below AQF 7, while 2% had no formal qualification mapped at all. Among those, 1,967 advisers were registered under the experienced provider pathway. Another 246 advisers combined the pathway with a marked qualification.

The report noted that lower recorded education levels do not necessarily indicate non-compliance. However, the pathway’s relevance is fading as the industry moves toward a more qualification-driven model. “Pathway-reliant books skew senior and will retire out, while the approved-qualification cohort is the durable base,” the report stated.

Regulatory scrutiny tightens compliance

Since February, the Australian Securities and Investments Commission (ASIC) has reviewed the Financial Advisers Register (FAR), identifying 132 individuals without any recorded qualifications or training courses across 82 licensees. Of those, 106 records were later updated to confirm qualifications, while 26 advisers had their authorizations ceased.

The financial adviser exam, introduced as a separate requirement, also prompted a wave of exits. In January 2022, when the exam became mandatory, 746 advisers left the register permanently—roughly ten times the usual monthly departure rate. The spike showed the exam’s role in reshaping the industry’s composition.

The report suggested that as platforms and dealer groups compete for advisers, qualification levels will increasingly serve as a differentiator.