A clear guide for students and career changers
Starting a new career can feel overwhelming—especially when the path isn’t immediately clear. If you’ve ever considered becoming a financial planner but felt confused about the qualifications or unsure where to begin, you’re not alone.
The good news? While the process might seem complex at first, it’s much more straightforward once you break it down. Whether you’re fresh out of school or switching careers, here’s a simple guide to help you understand what it takes for new entrants to become a financial planner in Australia.
Step 1: Meet the Education Requirement
To get started, new entrants must complete an approved bachelor’s degree (or higher) in a relevant field. This is your foundation.
The list of approved degrees and universities is set out in the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021, which you can view here. Additionally, the FAAA’s Advice Academy website has a summary table of approved education providers and the programs they offer.
If you already hold a degree in another field, don’t worry—there are pathways to approved Graduate Diploma of Financial Planning degrees (8 units) and approved Master of Financial Planning degrees (12 units) that can help you meet this requirement.
Step 2: Pass the Financial Adviser Exam
This exam, administered by ASIC, tests your applied knowledge in key areas such as:
- Ethics and professional standards
- Financial advice processes
- Relevant legislation and regulatory obligations
Here’s what you need to know:
- Timing: You can sit the exam at any point—even before completing your degree or starting your Professional Year.
- Format: The exam runs for 3.5 hours, is open book, proctored and includes around 70 multiple choice and true/false questions.
- Cost: The current fee is $1,500 and must be paid when booking.
- Schedule: Exams are held quarterly, and bookings are essential.
- Preparation: There’s plenty of support available, including practice exams, tutorials, and recommended reading lists—both from ASIC and third-party providers.
While it’s open book, and you do have resources at the ready, don’t let that fool you—the questions require a solid understanding of how to apply concepts in real-world scenarios. Preparation is key.
Step 3: Complete the Professional Year
Think of this as your on-the-job training phase. It’s a structured, supervised year of work designed to help you put theory into practice.
Key requirements include:
- 1,600 hours of work, which includes at least 100 hours of structured training
- No set time limit to complete it—as long as the hours and requirements are met
- Quarterly progression based on achieving specific outcomes
- Supervision by a qualified financial adviser, and a professional year plan set with your licensee
To begin Quarter 3, you must:
- Have completed your degree
- Passed the Financial Adviser Exam
- Completed Quarters 1 and 2
- Be authorised to provide personal advice under your licensee
Once in Quarters 3 and 4, you can become a “Provisional Relevant Provider” by having your AFSL (Australian Financial Services Licensee) apply to ASIC for you to be added to the ASIC FAR (Financial Adviser Register) with this title.
At the end of your Professional Year, if all requirements are met and documented (typically via a logbook), and your supervisor and AFSL deems you competent, your AFSL will issue a final PY completion certificate. Your AFSL will then need to update your status on ASIC FAR to “Relevant Provider”—officially recognising you as a qualified financial planner.
Why It’s Worth It
Embarking on a career in financial advice can feel like a big commitment—but from my own experience, it’s incredibly rewarding.
Engaging with professional associations like the Financial Advice Association Australia (FAAA) and attending industry events has not only expanded my knowledge, but also connected me with passionate, like-minded professionals that are on a similar journey. These networks have offered support, mentorship, and inspiration every step of the way.
Yes, the path requires time and effort—but that’s what makes it meaningful. Taking your time to gain real experience, build your confidence, and grow into your role will pay off in the long run.
Final Thoughts
If you’re a student or someone considering a career change, don’t be discouraged by the formal steps. Instead, see them as stepping stones to a purpose-driven profession where you can make a real difference in people’s lives.
Financial planning is about more than just numbers—it’s about helping individuals and families make informed decisions about their future. If that sounds like something you’d enjoy, then now might be the perfect time to take the first step.
