FASEA has released exam results from the twelfth Financial Advisers Exam held May 2021.
Result highlights include:
- Over 14,850 advisers have passed the adviser exams held to date representing 74% of advisers on ASIC’s Financial Adviser Register (FAR).
- Overall, 89% of advisers who have sat the exam have passed.
- To date, 1918 unsuccessful candidates have re-sat the exam with 65% passing at a re-sit.
- 74% of candidates sitting the exam for the first time passed the May exam (compared with an average of 82.4% across all exams)
- 69% of candidates passed the May exam
- 1894 advisers sat the exam compared with an average of 1437 across all exams
- 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
“FASEA congratulates successful candidates on completing an important component of their education requirements under the Corporations Act.
Over 16,700 advisers have sat the exam with 9 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.
In recognition of their achievement, passing candidates who give consent, will have their names added to the successful candidates list on the FASEA website” FASEA Chief Executive Officer Stephen Glenfield said.
Candidates who were unsuccessful in this exam will receive additional individual feedback to highlight the curriculum areas where they have underperformed. 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.
Further analysis of the May exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates. Exam question areas advisers have underperformed on the May exam are set out below (categorised by curriculum areas):
Financial advice regulatory and legal obligations
- Demonstrating knowledge of when practitioners are required by law to provide a retail Client with key documentation i.e. FSG/SOA
- 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
- Evaluating client scenarios in terms of legal requirements of privacy legislation
Applied ethical and professional reasoning and communication
- Identifying sources of judgement and biases and their influence on financial advice
- Effectively applying the FASEA code to various client scenarios and identifying compliance and non-compliance
Financial advice construction
- Demonstrating an understanding of advising on complex family structures in constructing the advice.
Existing advisers have until the end of 2021 to pass the exam. FASEA is offering 3 further sittings in 2021 both online and in physical locations (subject to COVID protocols). Exam booking information can be found on the FASEA website.
Over 2700 advisers have booked for the July exam, to be held in metropolitan and regional locations and online from 15 to 20 July 2021. Over 230 advisers have booked for the September exam, to be held in metropolitan and regional locations and online from 9 to 14 September 2021, bookings close on 20 August 2021.
To assist advisers preparing for the exam, FASEA provides preparation resources, including practice questions, online. Practice questions are regularly updated and can be found on the FASEA website or via the adviser’s exam account. Feedback received from past re-sit participants in the exam indicated these resources were useful for their preparation.
Additional background
Section 921B (3) of the Corporations Act 2001 requires advisers to pass an exam approved by the standards setting body. The Act requires existing advisers to pass the exam before 1 January 2022.
On the 24 June 2021 the Minister for Superannuation, Financial services and the Digital Economy and the Minister for Women’s Economic Security announced Government’s intention to extend the transition date to 30 September 2022 for existing relevant providers who have attempted the exam unsuccessfully at least twice prior to 1 January 2022.
New entrants are required to pass the exam before becoming a Provisional Relevant Provider.
The exam tests three domains of knowledge and skill:
- financial advice regulatory and legal obligations
- applied ethical and professional reasoning and communication: and
- financial advice construction
FASEA, with the support of the Exam administrator (ACER), has successfully offered 12 exam sittings to date on more than 60 exam days and 858 exam sessions. Since June 2019, exams have been offered in capital cities and in 23 regional locations across Australia (with the April and June 2020 exams being remote only exams due to COVID-19 restrictions).
Candidates are required to demonstrate professional reasoning and apply knowledge acquired to financial advice scenarios at AQF7 level of reasoning.
FASEA is offering three further exam sittings in 2021. Unsuccessful candidates may re-sit the exam during this period.