The changes, which the FAAA called “important amendments”, ensure that existing advisers who have relied on the alternative qualifications pathway, such as the eight-subject credit-reduced option, will be recognised.
Schedule 5 of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 contains a minor and technical amendment to correct an “inadvertent drafting error” in Section 1684A of the Corporations Act 2001 relating to the transitional arrangements for existing financial advice providers to meet the qualifications standard.
Importantly, the updates are don’t impact advisers with an approved degree or those using the Experienced Adviser Pathway, with FAAA chief executive Sarah Abood welcoming the passage of the bill, which finally occurred last Thursday – the final sitting day of the year.
“Among the number of financial advice reforms being progressed in Parliament, I am particularly relieved that the technical wording issues in the Corporations Act around qualification requirements for existing providers have now been fixed,” Abood said.
“This ensures continuity for advisers who have followed the alternative pathway in good faith.”
In its submission to a Senate committee review of the bill, the Financial Services Council (FSC) noted that in transitioning to the new professional standards, financial advisers have “reasonably relied on the existence and availability of this qualifications pathway to maintain their authorised status beyond 1 January 2026”.
“Maintaining this pathway is critical to ensure many financial advisers can continue to provide advice to the many Australians who currently rely on it,” the submission said.
Existing providers have until 1 January 2026 to meet the qualifications standard to maintain their ‘relevant provider’ status to be authorised to provide personal advice from that date.
Under the rules, existing providers can meet the standard by either completing an approved qualification, completing qualifications the minister has determined to be equivalent to an approved qualification for existing advisers, or by accessing the experience provider pathway.
“The amendment in this bill addresses a previous change to the law which removed access to the alternative qualification pathway as a means of meeting the standard for existing providers,” the FSC said in its submission.
“The alternative qualification pathway allows existing providers to meet the qualifications standard by completing the necessary top up courses determined by the minister.”
The Senate committee recommended the passage of the bill, noting the importance of the amendments being in place as soon as possible to ensure the continuation of various government programs.
Noting the FSC’s support for the amendment, the committee said: “This part of the Corporations Act provides a pathway for existing financial advice providers to meet the enhanced qualification requirements for financial advice providers.
“Changes enacted by this schedule of the bill addresses an error which removed alternative qualification pathways for existing financial advisers. The FSC’s submission noted that this technical amendment was essential for allowing many financial advisers to continue to be able to provide advice.”
This appears to be abusive retrospectivity under English Common Law to violate procedural justice and distributive fairness that affects our 7 of our 11 qualified advisers to have their licenses terminated on 1 January 2026, who were:
1. licensed before 31 December 2021,
2 have done nothing wrong since being licensed with a clean ASIC disciplinary record to 31 December 2025, and
3. passed their (FASEA ethics) financial adviser exam before 31 December 2021.
4. Passing this FASEA financial adviser exam qualification (and other relevant industry training courses – Treasury applies the term ‘non-assessable’) was ignored in Legislation that came into force on 31 December 2021. Was this the retrospective drafting error?
This is not to be celebrated.
The ALP treats advisers with contempt. They cannot do their jobs properly, mistakes everywhere requiring amendment which is left to the last minute.
This is not a win.
The fact that they passed this on the very last sitting day of parliament for 2026, despite being aware of the problem for a long time tells you everything you need to know.
ALP out.