Financial Services Minister Stephen Jones has announced plans to reform education requirements for advisers.

He also voiced concern over the sustainability of the Compensation Scheme of Last Resort (CSLR) in a speech today at an industry conference.

Mr Jones said the government’s education proposal – a bid to halt the shrinking pool of advisers – represents the “next step in our reform of the financial advice industry”.

“The new standard will continue to recognise the important role of tertiary education,” he told the conference.

“Under our proposal, individuals will be able to hold a bachelor’s degree or higher in any discipline.

“Prospective advisers will need to meet a minimum study requirement in financial concepts such as finance, economics or accounting.

“This means firms will be able to attract graduates with degrees in economics, commerce and finance, among others.”

He says the proposed shake-up will create a better pathway for career changers.

Advisers have responded cautiously to today’s announcement.

“We welcome the minster’s recognition that changes to the education standard are due,” Financial Advice Association Australia CEO Sarah Abood said.

“We note that important detail is yet to be communicated, including the timing, arrangements for current students, and any impact on those existing financial advisers who are striving to meet the education standard by the deadline of January 1 2026.

“Noting that a federal election must be held by May this year, and assuming that no changes will be legislated before then, we will work with the government post-election to make sure that changes will support the growth of professional financial advice, for our members and consumers.”

Mr Jones also raised concerns over the industry-funded CSLR, which is the target of a Treasury review less than 12 months after it began operations.

The review came after the scheme operator released initial actuarial estimates indicating it will need to collect nearly $78 million in levies for the 2025-26 financial year.

Mr Jones said: “I am concerned about the sustainability of the scheme on its current trajectory. It is not sustainable for financial advisers.

“And it is no good for consumers if the scheme falls over. So I have tasked Treasury to review the CSLR immediately. We need to ensure that it is sustainable.”