December 14, 2018
Financial advisers will be given three hours to answer 70 questions in the proposed FASEA Adviser Exam but will only be provided with limited feedback on their answers if they fail.
Advisers will also be required to pay $540 each time they take the exam but will be able to resit the exam multiple times, according to FASEA which has released the draft legislative instrument for the exam for industry consultation.
In its FPS006 Examination Policy paper released with the instrument, FASEA stated the exam would contain at least 70 questions, which would be comprised of at least 64 multiple choices questions and at least six written case study style questions.
The exam will cover Financial Advice Regulatory and Legal Obligations, Applied Ethical and Professional Reasoning and Financial Advice Construction and will be delivered by The Australian Council for Educational Research.
Advisers, however, will not be told how well they have performed with the policy paper stating, “Exams will be marked to a credit level and the candidate will be awarded a “pass” or “fail” on this basis”.
“Exams will be marked to a credit level and the candidate will be awarded a “pass” or “fail” on this basis”
Those who have failed will have limited feedback on how they performed with the policy paper adding, “A candidate who has failed an exam will be able to apply for a review of the marking one time and only of the written response style questions of the exam”.
Advisers choosing to resit an exam will also be presented with a new set of questions with FASEA indicating it would change the exam content on a regular basis.
Each exam would take three and half hours to complete, including 30 minutes reading time, and will be held at exam centres in capital cities and regional centres using dedicated computers that will provide access to any information, including the Corporations Act, to complete the exam.
Exams will be scheduled quarterly from mid-2019, and bi-monthly from 2020, and a digital option will be made available from that date as well for those who are unable to travel to an exam location.
Prior to the commencement of the exams, FASEA will publish a list of recommended reading and practice exams on its website but will not provide examination preparation courses.
FASEA has given advisers less than three weeks, from the release of the standard on 14 December 2018, to make submissions with the closing date of the consultation period being 4 January 2019