According to Padua Wealth Data, of the 20,546 candidates who have passed the ASIC financial adviser exam since 2022, 5,159 – or 33.5 per cent – aren’t currently providing advice. That figure has grown from 28.1 per cent in August 2024.
This gap is closely tied to the regulatory changes that came with ASIC taking over the exam from FASEA on 1 January 2022. Previously, only those registered for a professional year (PY) could sit the exam.
ASIC’s new approach allows candidates to take it before starting their PY, opening opportunities for aspiring advisers who have not yet entered full-time advice roles.
Joel Ronchi, an adviser coach, explained that many of these exam-passers work in support or compliance roles rather than providing face-to-face advice.
“The vast majority of people who come to me are associate advisers. They’re working in a practice, usually in a support role, but a non-advice support role. A lot of people are also CSOs, people from compliance,” he said.
“Anyone who’s a new entrant to the industry, they don’t have to wait until they’re in their professional year to sit the exam. So that’s opened up a whole opportunity for people to do the exam before even contemplating the professional year.”
Passing the exam before starting a PY can be a strategic career move.
Ronchi said: “It makes their career pathway a lot stronger because it ticks a mandatory box, but it also demonstrates to the industry and potential employers that they’re serious about a career in financial advice.”
Paraplanners are another notable segment. Some have passed the exam but don’t provide direct advice, meaning they aren’t on the Financial Advisers Register (FAR) and don’t require full adviser registration.
“There are paraplanners who have sat the exam but don’t provide face-to-face advice so they don’t need to be on the FAR, given there’s a cost involved in that for the firm,” Ronchi said.
Colin Williams, founder of Padua Wealth Data, added that career changes or job losses may also explain part of the missing third.
“It could be people who have retired, who have resigned from the role, or people like salaried bank advisers who took the exam but now they have lost their jobs. Others may have lost their job earlier but sat the exam regardless as a way to keep themselves up to date if they want to get another job,” Williams said.
Ronchi has also observed candidates from outside the industry and overseas aspiring to become advisers in Australia. Together, these groups contribute to a growing pool of exam-qualified individuals who have yet to enter active advisory roles.
For IFAs and firms, understanding this missing third is increasingly important for workforce planning and mentoring given it represents both untapped talent and a reflection of evolving career pathways in the advice sector.
I provide advice and have passed the ASIC exam. Every day I wonder why I put myself through the hell that is financial planning so I can definitely understand why some people don’t do so.
Retired
Quit
Chased off by mad ASIC & CSLR levies
Red Tape strangled to death, RIP
Imagine being a highly qualified and experienced professional who works long hours to ensure your clients can met their goals, and getting absolutely no respect from anyone other than your clients who know your value. The government, regulators, the media, consumer bodies, product providers etc all treat you like a criminal for wanting to be paid fairly for the work you do. Despite you doing the right thing by your clients you will be forced to bail out consumers impacted by scam artists and product manufacturers. Product manufacturers will try to get crave outs to do your job without all the regulations you have to follow. Accountants, finfluencers and property spruikers will continue to provide unlicensed advice while the regulator sits on their hands. The government will force you to fund ASIC and if they are successful in obtaining any financial penalties they are sent to consolidated revenue. Read this and ask the question again, why would you want to be a financial planner.
So it’s easier for them to get an overpaid compliance or bdm role with no litigation risk, profiteering on the red tape and bloated parasitical stupid regulations.