More than 16,000 advisers have now passed the FASEA adviser exams, following the July 2021 sitting.
According to a release from FASEA of those who have passed, some 14,070 are recorded as active advisers on ASIC’s Financial Adviser Register, representing 73 percent of active advisers.
FASEA says that of those who have passed:
- More than 1,650 are ceased advisers on the FAR and may be re-authorised
- More than 310 are new entrants and may be authorised as a provisional financial adviser
The authority notes that overall 88 percent of advisers who have sat the exam have passed and that, to date, 1,932 unsuccessful candidates have re-sat the exam with 65 percent passing at a re-sit.
It also highlights that:
- 69 percent of candidates sitting the exam for the first time passed the July exam (compared with an average of 81 percent across all exams)
- 60 percent of all candidates passed the July exam
- 1,963 advisers sat the exam compared with an average of 1474 across all exams
- 30 percent of candidates were re-sitting the exam compared to an average of 20 percent in recent exams
FASEA Chief Executive Officer Stephen Glenfield says that more than 18,140 advisers have sat the exam “…with approximately nine in 10 demonstrating they have the skills to apply their knowledge of advice construction, ethics and legal requirements to the practical scenarios tested in the exam.”
The authority says that candidates who were unsuccessful in this exam will receive additional individual feedback to highlight the curriculum areas where they have under-performed. They will also receive an invitation to a FASEA-led webinar to help them understand their results and provide guidance on how to prepare for their next sitting.
FASEA encourages unsuccessful candidates and future candidates to access the range of tools available to assist advisers preparing for the exam. Click here for FASEA’s preparation resources, including practice questions.
The statement adds that the Corporations Act requires that existing advisers have until the end of 2021 to pass the exam. FASEA is offering two further sittings in 2021 both online and in physical locations (subject to Covid protocols).
It says that more than 1,700 advisers have booked for the September exam, to be held in from 9 to 14 September 2021 and more than 320 advisers have booked for the November exam, to be held from 11 to 16 November 2021. Bookings close on 29 October 2021.
(See: FASEA Eases Adviser Exam Rules.)
Areas for improvement
FASEA says further analysis of the July exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates. Exam question areas advisers have under-performed on the July exam are set out below.
Financial Advice Regulatory and Legal Obligations
- Demonstrating knowledge of when practitioners are required by law to provide a retail client with key documentation e.g. FSG/SOA etc
- Demonstrating knowledge of the components of key advice documentation that is provided to the client
- Evaluating case studies and identifying breaches of financial disclosure obligations
- Applying relevant sections of the Corporations Act when identifying responsible provider obligations, including breaches of those obligations
- Applying Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance
Applied Ethical and Professional Reasoning and Communication
- Demonstrating an understanding of the relationship of the FASEA code to professionalism of the entire industry
- Applying best interests duty and associated obligations to clients in scenario based problems
- Identifying sources of judgement and biases and their influence on financial advice
Financial Advice Construction
- Demonstrating an understanding of the context in which financial advice is given and requested and how this impacts decision making
- Identifying inappropriate advice and how to comply with the Code of Ethics