The AFA has reassured its members the intended extensions to the time-frames for advisers to undertake the FASEA exam and complete its new minimum education standards will pass the Senate this year.
In a video message to members before the Easter break, AFA CEO, Phil Kewin, said he had received confirmation from Government contacts that the legislation for the extensions, which has already passed the House of Representatives, will be passed by the Senate this year (see: FASEA Extensions Confirmed).
Kewin noted he had also been in contact with the office of the Opposition Shadow Minister for Financial Services, Senator Stephen Jones, which advised him Labor will support the extensions Bill when it is brought before the Senate.
Once the new requirements have been legislated, advisers who were registered on ASIC’s Financial Adviser Register on 1 January 2019 will now be required to:
- Complete the FASEA-approved adviser exam by 1 January 2022
- Meet FASEA’s minimum qualification requirements by 1 January 2026
Previously, advisers were only given until 1 January 2021 to pass the exam and until 1 January 2024 to meet the minimum education standards. This means advisers have one extra year to pass the exam and two extra years to complete their required studies.
I don’t know about this. If I don’t pass the exam by the end of the year (I have done it) then, as the law stands, I will lose my licence. I find it incredible that over 10,000 advisers rely on the mercy of a Parliament that has urgent other business. Another black swan like Covid-19 … what will happen then? What kind of risk management is not using every opportunity to sit the exam until one passes?
shouldn’t have had to do the stupid exam anyway, the test was so hard no one really passed (all of my staff passed – id love to see the real results) and totally irrelevant to most of the industry….. total waste of money and time.
Hi Chris, 2 common reasons why thousands of advisers have delayed sitting the exam, was for many, it and the required qualifications, along with all the other body blows advisers have had to endure, was the final straw and there was going to be a mass exodus, especially for Risk only advisers who could not accept irrelevant, costly and time consuming studies.
The second reason was a protest vote.
The extension has delayed the mass exodus of risk advisers and that is all it has done, unless there is an overhaul of the LIF.
The reality of the way Government and Big Business operate, is a series of steps to hopefully end up with the correct result.
What the extensions will do is enable the Industry and the regulator to collate data and see the consequences of the LIF and consult with the correct people who can actually save, remedy and rebuild the Life Insurance Industry to be a strong pillar of the economy.
I agree with every comment on this page and unfortunately its not the first time we have all had a “winge” about it. It obviously appears no one is listening and no one cares { including associations} !
Jeremy is 100% correct on a mass exodus “watch this space” come the 31st December 2025 { it will still slowly trickle away until then though} and i am more than likely going to be one of them ? After 41 years providing assistance and guidance to thousands of clients it truly upsets me that i will not be able to provide this care unless i complete some BS course that has no impact of any sort on what i do. Including the clients best interests duty consistently thrown about like a rag doll!
After 40 years and not one complaint of any sort you would think they would understand i have a good idea of how to treat my clients by now. Not to mention the cost and time away from my business that is already suffering due to 40% commission reductions 2 year responsibility periods and every other obstacle that has been thrown at us over so many years now.
Thanks a lot AFA and FPA you have “paraded” your so called concerns for 4 years now but never addressed the real issues here for your advisers who have consistently paid fees and supported you. Not one letter to any Governing body saying ” enough is enough”
Does the grass really look greener on the other side? You may well find out when you have no members.
Yes its a ” rant” born out of shear frustration.
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