As the Australian financial planning landscape continues to evolve, professional standards and regulatory oversight are at the heart of reform efforts aimed at restoring trust, improving adviser quality, and ensuring consumer protection. With a shrinking adviser population and shifting compliance expectations, 2025 is shaping up to be a pivotal year for the future of the profession.
Education & Qualifications: Balancing Rigor and Accessibility
One of the most debated topics is the education pathway for new and existing advisers. The Federal Government has proposed easing the rules allowing advisers with a non-finance degree to qualify, provided they complete approved finance coursework. This move, backed by some industry associations, aims to attract younger talent and address adviser shortages without compromising advice quality.
Meanwhile, the Financial Adviser Standards and Ethics Authority (FASEA) Code of Ethics remains central. Advisers are expected to meet high ethical standards, complete continuing professional development (CPD), and pass the national adviser exam. However, stakeholders continue to debate whether these measures are fit for purpose in today’s fast-changing advice environment.
Regulatory Focus: ASIC and APRA Step Up Oversight
The Australian Securities and Investments Commission (ASIC) has intensified its reviews across key advice areas. In 2025, it’s taking a closer look at:
- SMSF advice quality and disclosure
- High-fee structures and conflicts of interest
- Underperformance in advice models within superannuation funds
ASIC has signaled that poor disclosure and inappropriate product recommendations will not be tolerated, particularly as more consumers access digital or intra-fund advice.
At the same time, APRA is pursuing stronger governance in financial institutions. Proposed reforms include stricter board independence rules, caps on director tenure, and enhanced conflict management—moves designed to improve transparency and long-term stewardship in financial services.
Deregulation vs. Integrity: A Delicate Balance
A key challenge is balancing consumer protection with reducing regulatory burden on advisers. Many professionals argue that over-regulation especially compliance-heavy Statements of Advice (SOAs)—has made advice costly and inaccessible to the average Australian.
The government‘s proposed replacement of SOAs with the Client Advice Record (CAR) is a step toward simplification. However, regulators caution that any loosening of standards must be carefully managed to avoid repeating the missteps that led to past royal commissions.
The Road Ahead
2026 may be a turning point for the Australian financial planning industry. Regulatory bodies, the government, and the profession itself are engaged in reshaping a system that:
- Upholds high ethical and educational standards
- Ensures affordable and accessible advice
- Supports adviser well-being and sustainability
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Credits:
Ratheesh, Wealth Management Team