Earlier this month, the Financial Services Council (FSC) warned that unless an omnibus bill is passed before 1 January 2026, an “inadvertent drafting error” could see more advisers unable to practice following the education standards deadline.
Drafting errors have plagued the Labor government’s financial advice reforms since early last year, when an issue with the first Delivering Better Financial Outcomes (DBFO) bill included language that would have effectively stopped general advice providers from utilising the exemption on conflicted remuneration in section 963B of the Corporations Act.
The government sought to address this latest issue through the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025, which has just completed its review.
In its submission to the review, the 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.
Having completed its review, the Senate committee has recommended the passage of the bill.
The explanatory memorandum explained that the amendments “correct unintended drafting outcomes, update legislative references, simplify provisions and reduce red tape”.
“These amendments will enable ongoing administration of key government programs and address unforeseen outcomes of previous legislative changes that undermine the proper functions of various government initiatives,” it said.
According to the report, the amendments need to be in place as soon as possible to ensure the continuation of various government programs. They also ensure that current law reflects Machinery of Government changes, address unintended practices and rectifies drafting errors.
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.”
Under the current 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.
This proposed amendment comes at the last possible minute, with the final sitting days of Parliament for 2025 running from 24-27 November, giving the government a short window to act before the transition to the new qualification standards starts on 1 January 2026.
