CPA Australia said that with the number of financial advisers having almost halved in six years, millions of Australians on the cusp of retirement are at risk of making questionable investment decisions.
The association said unless urgent action is taken to reverse the increasing shortage of advisers, many Australians will start their retirements without receiving the professional advice they need to ensure they have secure and reliable retirement incomes.
Richard Webb, CPA Australia’s superannuation lead, said a “mountain of red tape” is a key contributor to financial advisers quitting the profession.
The number listed on the Financial Advisers Register has almost halved in six years, down from 26,500 in 2019 to just 15,300 as of July 2025.
An increasing number of Australians nearing their retirement plan to reinvest their superannuation savings outside the super sector. This includes putting money into speculative and potentially volatile investment options such as cryptocurrency, gold and property.
“More than 2.5 million Australians will retire in the next decade – and many will be shocked to discover there are fewer than 15,300 professional financial advisers to assist them with some of the biggest decisions of their lives,” Webb said.
“With the increasing propensity of retirees to leave their super funds and seek higher investment returns through risky investments, expert financial advice is needed now more than ever.”
CPA Australia has called on the federal government to prioritise a review of the regulations and costs forcing advisers out of the profession, as well as deterring new entrants, noting there are a range of reviews and legislative changes that are in the works but yet to be completed.
This includes finalising the post-implementation review of the Compensation Scheme of Last Resort as well as updating financial advice education standards and changes to the best interests duty.
It has also recommended the government prioritise clarifying the role of the new class of adviser.
“Investing retirement savings is complex and carries with it intricate tax and super settings, asset tests and administrative burdens, however, getting the right advice is only becoming harder to find and more expensive,” Webb said.
“The federal government must take action to help alleviate the burden of regulation and costs faced by advisers before the shortage becomes an irreversible crisis.”
Webb added the tightening of regulations following the Hayne royal commission was intended to improve outcomes for clients, but the sharp decline in the advice sector has proved an unfortunate consequence.
“The cumulative effect of the regulatory burden imposed on the profession in recent years has demoralised advisers to the point where many are now walking away from businesses they grew from the ground up,” he said.
“The government needs to work constructively with the profession to understand these challenges and begin to address them as quickly as possible.
“Superannuation funds could also do more to help prepare their members for retirement – as required by the retirement income covenant – but their ability to make appropriate advice solutions available is diminished by the exodus from the profession.”
What is the criteria to become Accredited Financial Adviser?
All Advisers must be authorised by an Australian Financial Service Licensee (AFSL) holder.
Requirements:
Pass the Adviser exam, and
a) Minimum RG146 short course, 10+ years experience with no other requirements specified, or
b) Relevant/approved grad and/or post grad qualification and completion of Ethics course (plus Professional Year for new entrants since 2019).
Treasury when they reviewed the impact of FoFA acknowledged job losses and basically said they’d be other particpants and other avenues that will fill the gap, and in a dismissive way said sucks to be you…..
I’m pretty confident that that thinking still persists and “the gap” will be fillled by scammers, influencers, facebook groups, super funds and accountants and that’s exactly how ASIC and Treasury want it.
I’m a CPA who is beginning a career change as an advisor. After completing the qualification twice, once in 2011 and now in 2025 and then having to pay $1,500 to sit the exam there is no incentive other than pure passion to join the financial advice industry.
I wonder if their next press release calls for an accountant’s exemption to fill the gap…
They already tried on April and in submissions for qoar which were addressed as incorrect. Just won’t stop, accountants are even worse than bias industry funds at advice and both are rubbish
Too little too late, there will be a few thousand less in a couple of years.
Advisers have been warning of this for this for years. Add the horrendous stats on mental health and suicide within the profession and it is easy to see a profession that has been persecuted and continues to be.
Even great practitioners that should have 20 years of advice ahead of them – have had enough. The smart ones can see that the ASIC funding model, CSLR and the design of PI have advisers in the barrel. Where the last business standing will simply turn out the lights and walk away. If you rewind to post RC when there were more people employed in compliance, look back, audit and compensation programs than there were employed as advice practitioners it was easy to see the writing on the wall. For all the growth, every single bank said – ‘not for me’ and walked away. There will be wholesale advisers or private client advice, that sits outside most regulation and there will be industry fund employed advisers whose sole job will be to funnel more money into the industry fund. Independent retail advice and advisers. Good luck! You’re only one law reinterpretation from having to refund fees of the last decade or compensate clients for returns under the index and your business will need to close.
That seems to be the plan anyway.
Very well summed up
Bravo!