A person in training to become a financial adviser is generally called a new entrant.
Since 1 January 2019, new entrants wanting to commence a career as a financial adviser must:
- Complete an approved degree
- Undertake a professional year; and
- Pass the financial adviser exam
A new entrant can be classified as a ‘provisional relevant provider’ after they have achieved the following milestones:
- completed an approved degree or equivalent qualification
- completed quarter one and quarter two of the professional year
- passed the financial adviser exam, and
- being authorised by their Australian Financial Services Licensee as a provisional relevant provider on the Financial Advisers Register
The expressions “provisional financial planner” and “provisional financial adviser” are defined as a provisional relevant provider.
After a provisional relevant provider completes the third and fourth quarter of the professional year, subject to the authorisation from their Australian Financial Services Licensee, they may be classified as a relevant provider.
The education standards require that new entrants complete an approved qualification at a bachelor degree (AQF7 level), graduate diploma (AQF8 level), masters level (AQF 9) or an equivalent qualification before they can become a provisional financial adviser.
Before enrolling in a course, it is vital to confirm the course is approved by checking the current legislative instrument.
Before a qualification can be approved and added to the legislative instrument, the Higher Education Provider delivering the course must apply to the Minister to have the course assessed.
Prior to 31 December 2021 the Financial Adviser Standards and Ethics Authority (FASEA) was responsible for assessing courses. Degrees approved by FASEA prior to 31 December 2021 remain Approved Degrees for the purposes of the Corporations Act 2001.
Higher Education Providers can continue to refer to a course as a “FASEA approved degree” or “FASEA approved qualification” if the degree or qualification was approved by FASEA prior to 31 December 2021 and is listed in the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021.
If you have completed a foreign qualification, you may apply to have that qualification assessed against the financial adviser education requirements.