Eighty four percent of candidates passed FASEA’s June Adviser Exam, up from 79 percent in April, while FASEA has also outlined exam question areas where advisers have underperformed.
(See our April story: FASEA Adviser Exam Pass Rate Declines).
A statement from FASEA says result highlights from the June exam include:
- 2,282 advisers sat the exam compared with 470 advisers sitting the April exam
- 10,239 advisers have sat six adviser exams held to date
- Overall, 85 percent of advisers who sat the exam have passed, representing 40 percent of advisers on ASIC’s Financial Adviser Register (FAR).
- Due to COVID-19 restrictions, the exam was held online from 11 to 16 June
- The exam is marked to a credit standard and the pass rate varies with each exam
- The exam was subject to ACER’s comprehensive marking approach and was set at a consistent standard to prior exams.
The statement from FASEA says that whilst the average pass mark of 85 percent across exams held to date demonstrates a strong performance by advisers, analysis of exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates.
Exam question areas advisers have underperformed in are set out below (categorised by curriculum areas).
Financial Advice Regulatory and Legal Requirements:
- Advice documentation (including Financial Services Guide (FSG), Statement/Record of Advice (SOA/ROA), Product Disclosure Statement (PDS) and Fee Disclosure Statement (FDS)) – the exam tests an understanding of when to issue these to clients and what is required to be included (eg. fees and disclosures)
- Advice Types – understanding the difference between personal advice, general advice and information and how they apply to different client scenarios
- Privacy Act – understanding the difference between personal and sensitive information and whether consent has been appropriately obtained before using information
- Anti-money Laundering (AML) Act – identifying potentially suspicious transactions and required reporting in client advice scenarios.
Financial Advice Construction:
- Identification of client biases and how they may influence clients’ financial decisions and/or investment choices.
Applied ethical and professional reasoning and communication:
- Understanding the application of the Code of Ethics and the Corporations Act to advice scenarios.
FASEA also states that more than 1600 advisers have registered for the August exam, to be held in metropolitan and regional locations and online from 13-18 August. The Melbourne exams will only be online due to Covid-19 restrictions.
It adds that registration is open for the October exam, to be held from 8-13 October and the November exam to be held from 5-10 November 2020. Subject to Covid-19 restrictions, the exams will be offered in physical locations as well as online.
More than 600 advisers are currently registered for the October exam and more than 300 for the November exam, FASEA says.
Click here for FASEA’s preparation resources, including practice questions, to assist advisers preparing for the exam.