Only 32 percent of advisers who sat the February 2022 Financial Adviser Exam passed, ASIC results show.
A statement from the commission says that in the February 2022 exam cycle, of the 333 financial advisers who sat the exam 108, or 32.4 percent, passed. Some 73 percent of candidates were resitting the February exam for at least the second time.
In comparison, results from the the November 2021 exam saw 63 percent of candidates sitting the exam for the first time pass (compared with an average of 75 percent across all exams) and a total of 52 percent of all candidates passed that exam.
For the September 2021 exam 65 percent of candidates sitting for the first time passed (compared with an average of 78 percent across all exams) while 61 percent of all candidates passed that exam.
In outlining the latest February results, ASIC states that to date more than 19,850 candidates have sat the exam and nearly 91 percent of them have passed. Of those who have passed:
- Over 15,600 are recorded as current financial advisers on ASIC’s Financial Adviser Register representing 90 percent of current advisers on the FAR
- Over 2,260 are ceased advisers on the FAR and may be re-authorised in the future
- Over 480 were new to the industry
- Over 3,250 unsuccessful candidates have re-sat the exam, with 67 percent passing at a re-sit
The next exam sitting of 2022 will be held from 12 May until 16 May 2022. Enrolments for this will be open from 4 April 2022 and close on 26 April 2022.
ASIC also notes that the February 2022 exam is the first it has administered. The exam was previously administered by FASEA.
“The exam has been continuously conducted by the Australian Council for Educational Research since its inception and follows a rigorous process to ensure all candidates in all cycles are held to the same standard,” it says.
For the February exam cycle, as has been the practice for past exams, unsuccessful candidates will receive feedback from ACER to highlight the curriculum areas where they have under-performed.
I was an adviser in my 20s through the 80s. I retired last December in disgust and depression. Irrelevant and inappropriate exams for riskies, overbearing and wrong-minded compliance requirements and life company execs who don’t support advisers like they used to do i.e. 2yr clawbacks and 60/20 remuneration. The life companies were NOT adviser advocates when these changes were forced through – they did nothing, as it suited the life companies – or so they thought. They’ll have to pay the piper very soon on that one!
A life practice starting today is, unfortunately, doomed at such a low level of remuneration along with the threat from clawback after money used. Also, the ever present real threat of a compliance nightmare and client-sided regulator if a client chooses to complain about ‘anything’ be it my fault or not. I was NOT prepared to risk losing my home! I consider myself beyond fortunate to have served my loyal clients for near 4 decades – it was a fantastic ride for 30 years at least. never a client complaint and I had the joy of assisting with many claims which made my job extremely satisfying and rewarding.
Happily, at age 60 I sold in December, under threat of that irrelevant exam that I wouldn’t do on principle, to an adviser who ‘can’ survive better than most due to being well off financially. I’ve finally escaped this once-great industry while the escaping was good. I had all good intentions to go to 70 and beyond! Oh well . . . Come 2026 it would be too late as 90%+ riskies will indeed be gone, sadly. Good luck and wishes to all those riskies brave enough to stay and battle pollies, life coy execs and regulators. God help the new recruits . . . (don’t shoot the messenger, please, all the above is simply fact).
Happily, at age 60 I sold in December, under threat of that irrelevant exam that I wouldn’t do on principle, to an adviser who ‘can’ survive better than most due to being well off financially. I’ve finally escaped this once-great industry
So retired early. Woe is you.
Hahaha! Thanks Don, LOL, I should have done it 5 years ago, kept believing against belief that things would get better but that and other false hopes are now history . . . this once-magnificent industry is now for the birds. It has been abandoned by the life companies as evidenced by them simply walking away from adviser needs, needs that NEED to be met for them to stay advising but are NOT being met. They are still big on marketing words and puff pieces in the media but the life companies have checked out, you can see it in everything. What we DON’T need Don is BS window dressing on the serious problems in the industry. Pollies and life companies will supply all that – we need solutions and I fear they will simply not materialize at this late stage. Woe is ME Don? Hardly. I was extremely fortunate to get out when and the way I did, albeit a tad late. I’m set for life now. Woe, sadly, is the industry and the remaining advisers especially the newbies . . .
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