AFA Concerns Over FASEA Adviser Exam

The AFA has voiced a number of concerns about the proposed Financial Adviser Examination, details of which were released last week (see: FASEA Releases Draft Exam Guide).

AFA GM Policy & Professionalism, Phil Anderson: concerns about the FASEA exam…

Respected GM Policy & Professionalism at the AFA, Phil Anderson, has issued a statement in which he takes aim at the level of difficulty at which he and the AFA perceive the proposed exam appears to be positioned, and the impact this may have on the advice sector:

“The AFA is concerned that the FASEA proposed exam is positioned at a very difficult level and as a result advisers will find it extremely challenging,” commented Anderson.

He added that some of the Association’s key concerns relate to the context of the exam being closed book when it is an exam of up to four hours duration:

“This seems excessive,” said Anderson, adding “We think it is unreasonable to ask advisers to, for example, memorise 500 pages of Chapter 7 of the Corporations Act in order to prepare for the exam. We believe advisers will need more clarity around what parts of Chapter 7 will be tested.”

Anderson said the lack of preparation materials to be provided to advisers was also a concern, and he reiterated an earlier comment that the FASEA standards could lead to a mass exodus of experienced advisers from the financial advice profession:

…the FASEA standards could lead to a mass exodus of experienced advisers

“This would not only have a detrimental effect on those advisers, their staff and their businesses but also on the pool of mentors available for younger advisers, and on consumers, who would lose access to these highly experienced advisers and have fewer choices when it comes to engaging an adviser,” concluded Anderson.

The AFA says it will be consulting with its members on this issue during its July National Practitioner Roadshow, and that it will make a submission to FASEA “…seeking a more pragmatic outcome”


  • Scotson

    If Industry Super Funds had anything to do with this proposed exam who would be surprised. Whoever devised this proposal must be unaware (or maybe actually aware) of the potential sabotage of our Profession!!!!!
    Can we imagine the Hon Peter Collins doing this exam or David Whitely??????
    Memorising 562 pages of Chapter 7 will take time away from business. Then we have to be full bottle on every other aspect of Fin Planning presumably including Tax laws and regulations plus codes. No sample exam papers to guide us as to the depth of knowledge required. Just an entirely unreasonable task for busy people looking after needy clients.

  • Warren J

    May I ask the AFA – do you know if risk insurance specialists will be expected to answer questions specific to Financial Planning? Although there may be area that apply to both, I would suggest that clarification needs to be sought on this issue.

    • Squeaky_1

      Warren, exactly what I’ve been screaming about on these pages – separate quals for RISK-only and for INVESTMENT advisers. Makes no sense to test one on the other. If you want to do both then do both the exams/degrees, whatever. I will need to see this separate risk-only qualification prior to 2020 because that is when I plan to exit due to all this nonsense after 33 years serving clients for risk-only advice. You seem after 2020 the regulator gooses tell me I will be unworthy to stay. Go figure – this world is increasingly run/regulated by abject idiots.

      • Alan

        Don’t worry Warren, just get out of it and enjoy life! You don’t need a squillion in super, I am self funded and really enjoying retirement.

  • Ken

    Here we go again unrealistic ideals from people who have no idea how any of this works
    If you go to the Solicitor for legal advice does he orcdhev”rattle” the answer off the top of their head NO !! They say leave it with me I will “hit the books” on it and get bs knyonhou in s few days ?? A few weeks?
    The advice and financial services areas are no different You go away hit the books and come up with an appropriate strategy
    I have trouble remembering what I did yesterday let alone try and memorise 500 pages of an act
    For heavens sake will someone wake these people up ??