4600 relevant providers yet to meet qualification standards: ASIC

More than 4600 relevant providers have yet to meet qualification standards, according to ASIC, and have only six months to meet the deadline.

An ASIC spot check of the 15,610 relevant providers listed in the Financial Advisers Register found that 6426 hold an approved degree or qualification.

The remaining 4604 or nearly 30% of the population have yet to meet the qualifications standard.

"The deadline to meet the qualifications standard looms, and it remains unclear how many advisers will be properly qualified to provide personal financial advice on 1 January 2026," ASIC commissioner Alan Kirkland said.

"It's possible that some of these relevant providers may be eligible for the experienced provider pathway, but their AFS licensees are yet to advise us of that.

"It is crucial for ASIC to be provided with accurate information in the lead up to the January 1 deadline, and it's concerning that we have identified a number of errors and inconsistencies in the data that is on the register."

Worryingly, some relevant providers have declared they are relying on the experienced provider pathway when they do not appear eligible.

Others claimed qualifications when the course has not yet been completed or is not an approved course of study.

"As AFS licensees, you need to ensure each relevant provider who intends to provide personal financial advice from 1 January has the appropriate qualifications or is eligible for the experienced provider pathway and notify ASIC," he told an industry event.

"You should also review the information currently on the Financial Advisers Register about how your relevant providers meet the qualifications standard and ensure it is recorded correctly."

After January 1, ASIC will closely monitor the Financial Advisers Register and undertake a compliance program to determine if relevant providers remain authorised to provide personal advice to retail clients.

From that date, AFSLs must ensure each relevant provider who intends to provide personal advice has completed or is on track to complete an approved qualification; has completed or is on track to complete a qualification the Minister has determined to be equivalent to an approved qualification for existing providers, or is eligible to access the experienced provider pathway.

Elsewhere, Kirkland announced the regulator is kicking off a social media campaign to drive awareness of high-pressure sales tactics and direct people to the Moneysmart website for information on how to protect their interests.

These issues include consumers being lured by clickbait ads on social media or websites that encourage them to "find their lost super" or participate in a "super health check" for free.

Another is financial advice being provided by a telemarketer and recommending the consumer switch their super into a high-risk investment, often involving property development.