Why the next generation of advisers needs more than a degree
The changing face of financial advice
Australia’s financial advice industry is in a major transformation. In 2019, there were around 26,500 licensed financial advisers. Fast forward to 2025, and that number has dropped to just under 15,500, according to the Financial Advice Association Australia (FAAA, 2025). That’s a 40% decline in six years. But while the numbers are down, the opportunities for new talent have never been greater.
“Right now, we’re in a rebuilding phase. The challenge isn’t just finding advisers, it’s building the right ones.”
The industry needs more than just technically skilled professionals. It needs advisers who understand people, their goals, fears, and motivations, as much as they understand insurance products or superannuation rules.
Why fewer advisers means more opportunity
It’s easy to see the shrinking adviser pool as a red flag. But for those entering the field now, it’s also an open door.
The FAAA’s 2025 Adviser Numbers and Industry Snapshot confirms that advice demand is outpacing supply. Around 2.6 million Australians want to seek financial advice but can’t afford it or find an adviser who fits their needs (FAAA, 2025).
That gap represents opportunity for both clients and emerging advisers.
“Young advisers can build careers faster now than ever before. There’s real space to grow, lead, and shape how advice looks in the next decade.”
The university gap: Where grads get lost
There’s no shortage of graduates with finance degrees. But many arrive thinking financial advice is all about investment management or stock picking. In reality, that’s only a sliver of the profession.
Aimee shared that the bigger challenge is helping graduates understand the “human” side of the role. “Soft skills matter just as much as technical ones. Listening, empathy, and knowing how to guide someone through a tough financial moment, that’s what builds trust.”
According to the ASIC Professional Year Standards and Guidance (2024), new advisers must complete a Professional Year (PY) with 1,500 hours of supervised work and 100 hours of structured training before they can advise clients independently.
But the name “Professional Year” can be misleading.
“It’s not just one year. Depending on the firm and the person’s progress, it can take longer. That’s not a bad thing, as long as there’s structure and communication so people don’t feel stuck”
The Professional Year is designed to bridge the gap between theory and practice, but many firms still treat it like a checkbox exercise.
A recent KPMG Financial Services Outlook (2024) found that only 48% of advice firms have formal career frameworks for associates. That means many new entrants are left unclear about expectations, goals, and what “ready” actually looks like.
That’s something Skye is working to change. Aimee and Trent, Head of Advice at Skye, are developing structured pathways that map out milestones, KPIs, and the soft skills needed at every stage.
“It’s not just about technical knowledge. It’s about professionalism. We’re not just building advisers, we’re building professionals.”
Reframing what makes a great adviser
For too long, financial advice has been seen as a numbers game: budgets, investments, spreadsheets. But the most successful advisers are part educator, part counsellor, and part strategist.
FAAA’s Future of Advice Report (2024) notes that clients value communication and trust over technical complexity. The data shows that 81% of clients stay with advisers who “understand their personal situation,” even if competitors offer lower fees.
At Skye, that mindset is already shaping how new advisers are trained. From email etiquette to time management and real-world client conversations, the focus is on creating advisers who can relate, not just recite.
Why culture and mentorship matter
Culture might sound like a buzzword, but in a profession built on trust, it’s everything.
The FAAA’s 2025 report found that 73% of young advisers cite mentorship as the biggest factor in their career development. That’s why Skye prioritises pairing interns and associates with experienced advisers for hands-on guidance.
“Mentorship isn’t about giving answers. It’s about teaching people how to think and handle tough calls,”
For Aimee, culture is what keeps people invested. “When you’re surrounded by a team that genuinely cares about growth, both yours and the clients’, you’re more likely to stick around and thrive.”
A new era for advice
The advice industry is at a crossroads. As technology reshapes how we work and clients demand more transparency and empathy, the next generation of advisers will define the profession’s future.
The FAAA estimates that Australia needs at least 5,000 new advisers within the next five years to meet growing demand. But quantity alone won’t fix the problem. Quality will.
The goal isn’t just to fill roles; it’s to cultivate advisers who can bridge the gap between finance and real life. Advisers who know that the right cover or strategy isn’t just about numbers; it’s about impact.
At Skye, that’s the mission: to grow exceptional advisers and exceptional humans.
Resources
Financial Advice Association Australia (FAAA, 2025). Adviser Numbers and Industry Snapshot
ASIC (2024). Professional Year Standards and Guidance
KPMG (2024). Financial Services Industry Outlook
FAAA (2024). Future of Advice Report