The FAAA has backed the government’s proposed changes to the financial adviser exam.
The changes include making the exam completely multiple choice, removing restrictions on who can sit the exam, and allowing students to sit the exam at a stage that is suitable for them.
CEO Sarah Abood, says these changes will simplify and speed up the exam process, making it both more flexible and potentially much cheaper for candidates.
She says the association is in favour of wholly multiple-choice examinations, noting that moving to this format “…rapidly speeds up the process of marking the exams and ensures consistency of assessment without lowering standards.”
“Without a need for subjective marking of written answers, the marking process can be largely automated, removing the risk of human error and subjectivity and speeding up the provision of results to students.”
…The cost is now $1500 per attempt, almost three times higher than it was when the exam was first introduced in 2019…
Abode adds that this method of assessment “…is also cheaper to run, and we would expect to see a reduction in the cost of the exam as a result. The cost is now $1500 per attempt, almost three times higher than it was when the exam was first introduced in 2019.”
The change to allow financial planning students to sit the exam when it suits their schedule – including during their studies, rather than at a specific stage during the Professional Year – “…will have substantial benefits for new entrants.”
She says the proposed changes will also effectively allow anyone who wishes to do so to take the exam.
“This is a strongly positive move as there are many participants in financial services who have an interest in the content and in demonstrating mastery in this area – such as compliance staff and responsible managers, just to name a few,” she says.
