Parliament has passed legislation extending the deadline for financial advisers to meet new professional standards, ending a three-day stalemate and averting a crisis that could have blocked up to 2 million Australians from receiving advice during the coronavirus downturn.

The Senate on Wednesday agreed to drop an amendment put forward by crossbencher Rex Patrick that was holding up passage of the 12-month extension granted to advisers to pass a mandatory exam, which had been promised by the Morrison government but delayed by the pandemic.