Nearly 18,000 advisers have passed FASEA’s adviser exam to date, of which more than 15,500 are recorded as active advisers on ASIC’s FAR.
In releasing the results of the November Exam FASEA highlighted that more than 17,950 advisers have passed the adviser exams held to date. Of those who have passed:
- Over 15,500 are recorded as active financial advisers on ASIC FAR, representing 82 percent of active advisers on the register
- Over 1,980 are ceased advisers on the FAR and can be re-authorised
- Over 430 are new entrants and can be authorised as a provisional financial adviser
The statement from FASEA adds that overall, 91 percent of advisers who have sat the exam have passed and that to date, 3,197 unsuccessful candidates have re-sat the exam with 66 percent passing at a re-sit.
It notes that:
- 63 percent of candidates sitting the exam for the first time passed the November exam (compared with an average of 75 percent across all exams)
- 52 percent of all candidates passed the November exam
- 2,129 advisers sat the November exam compared with an average of 1,500 across all exams
- 65 percent of candidates were resitting the exam compared to an average of 18 percent across all exams
FASEA CEO Stephen Glenfield says that more than 19,775 advisers have sat the exam with approximately 9 in10 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 high pass rate reflects that the exam is an achievable exam for competent relevant providers regardless of their area of specialisation”.
FASEA says candidates who were unsuccessful in this exam will receive additional individual feedback to highlight the curriculum areas where they have under-performed.
The authority says that existing advisers who have sat the exam twice before 1 January 2022 have until 1 October 2022 to pass. Existing advisers who have not sat the exam twice before 1 January 2022 must pass by this date “…and are encouraged to contact their licensee to discuss next steps.”
ASIC will be responsible for the administration of the exam from 1 January 2021. Click here for ASIC’s guide on the timeframe for passing the exam.
Areas for improvement
FASEA says further analysis of the November exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates. Exam question areas advisers have under-performed on the November exam are:
Financial Advice Regulatory and Legal Obligations
- Applying Chapter 7 of the Corporations Act to components of SOA/FSG
- Applying Chapter 7 of the Corporations Act 2001 when evaluating case studies and identifying responsible providers’ obligations and breaches of those obligations
- Demonstrating knowledge of legal requirements for both individual and licensee
- Applying Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance
Applied Ethical and Professional Reasoning and Communication
- Identifying consequences (practitioner, client, industry) of not acting in best interests of clients
- Demonstrating knowledge and understanding of the Code of Ethics
- Identifying sources of judgement and biases and their influence on financial advice
- Applying the Code of Ethics to ethical dilemmas and issues in scenarios
Financial Advice Construction
- Demonstrating an understanding of the context in which financial advice is given and requested and how this impacts decision making
- Identifying misconduct and inappropriate advice, evaluating why it is inappropriate
