Professional year

If you are training to become a financial adviser, you must do a professional year before you can be fully qualified. Generally, the professional year requirements do not apply to financial advisers who are existing providers. For more information on who needs to complete a professional year, see the Financial advisers quick reference guide.

The professional year is also referred to as a ‘year of work and training’ and is one year full time, equivalent to 1,600 hours. At least 100 of these hours must be structured training. There is no time limit for completing the professional year – you can take as long as you need.

You will need to engage with your supervisor and Australian financial services (AFS) licensee to establish a professional year plan. The Corporations (Work and Training Professional Year Standard) Determination 2018 sets out the requirements that apply to the professional year, including the requirements for supervisors and AFS licensees.

You can have more than one supervisor during your professional year. However, each supervisor must meet the professional year supervisor requirements. It is recommended that one of the supervisors acts as the ‘primary’ supervisor and is accountable for the professional year plan and progress.

Progress through the professional year

The professional year is split into quarters so that you can transition from a directly supervised approach to an indirectly supervised approach:

The first quarter involves client observations under a supporting supervisor and experienced advisers.
The second quarter involves supervised client engagement and advice preparation.
The third and fourth quarters involve indirect supervision of client engagement and advice preparation.

You can begin the third quarter of your professional year and call yourself a ‘provisional financial adviser’ once you:

have completed an approved degree or equivalent qualification
have passed the financial adviser exam
have completed the first and second quarters of the professional year, and
are authorised by an AFS licensee to provide personal advice on relevant financial products to retail clients.

Structured training

The professional year standard requires the completion of 100 hours of structured training.

Structured training may include formal study undertaken during the professional year (for example, completing the Ethics for Professional Advisers bridging unit).  Other relevant study might include education to:

achieve a professional designation
receive accreditation in specific forms of financial products relevant to licensing arrangements, and/or
fulfill more detailed requirements for providing specific financial advice (for example, self-managed superannuation funds, stockbroking, aged care).

Structured training should be made up of education that is measurable, assessed and leads to further qualification (formal and informal) outcomes for participants.

Acceleration in the professional year

Your AFS licensee may accelerate your training to become a financial adviser during the first and/or second quarters of the professional year if the supervisor is satisfied that you:

have achieved the outcomes set out in the professional year plan for that quarter, and
are capable of satisfactorily completing the work activities and structured training for the next quarter.

The third and fourth quarters cannot be accelerated. Even with an accelerated pathway, a full 1,600 hours of work and training over a 12-month period is required to complete the professional year.

Accelerating the first and/or second quarters may allow you to progress to the status of provisional financial adviser earlier (subject to meeting all requirements and your AFS licensee’s approval).

Record keeping

AFS licensees can determine how to maintain record keeping of professional year, including developing templates and systems if required.

Requirements to notify ASIC

AFS licensees are not required to notify ASIC when a new financial adviser (that is, a person training to become a financial adviser) starts the professional year. However, once the person is authorised to provide personal advice on relevant financial products to retail clients on behalf of an AFS licensee, the AFS licensee must provide the following details to ASIC as part of the appointment process:

the date the person started the professional year, and
whether the person was accelerated during the first and/or second quarters of the professional year.

The AFS licensee should provide this information to ASIC when appointing the provisional financial adviser to the Financial Advisers Register through ASIC Connect.

AFS licensees must also notify ASIC within 30 business days of when the person has completed the professional year and a final completion certificate has been issued by updating the new financial adviser’s details on the Financial Advisers Register through ASIC Connect.

ASIC