July 17, 2018
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).
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”