To guide stakeholders in interpreting and implementing the Code, FASEA released guidance in October 2019, December 2019 and further released the Financial Planner and Advisers Code of Ethics 2019 – Guide in October 2020 (the Guide).

Pursuant to section 921U(1)(b) FASEA is required to review instruments regularly.

Based on feedback received from a range of stakeholders on standard 3 since the Code was registered and more recently during the consultation process conducted on the Guide, FASEA is considering amendment to the wording of Standard 3 to align the wording of the Standard to its intent as explained in the Guide. FASEA would welcome stakeholder input on the amended Standard 3 wording options being considered.

“The Code of Ethics provides an ethical framework of values and standards to assist advisers in exercising their professional judgement in the best interests of their clients.  FASEA understands that some stakeholders have raised concerns regarding the wording of Standard 3 and welcomes stakeholder feedback on proposed options to align the wording of the Standard with the intent of the standard.” FASEA Chief Executive Stephen Glenfield said.

Read the Consultation Paper.

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The amendment instrument provides relief from the 3 month registration requirement for the November exam, enabling all advisers yet to pass the exam the ability to register irrespective of the date of their last sitting or how many sittings.

The Legislative Instrument and Explanatory Statement can be viewed here.

November Exam will be offered from Thursday 11 to Tuesday 16 November 2021 and is now open for bookings.  All booking information can be viewed here.

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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.

The post FASEA releases May exam results appeared first on AdviserVoice.

Result highlights include:

• Over 12,000 advisers have passed the adviser exams held to date representing 57% of advisers on ASIC’s Financial Adviser Register (FAR).
• Overall, 89% of advisers who have sat the exam (irrespective of how often it was sat) have passed.
• 73% of candidates sitting the exam for the first time passed the January exam (compared with an average of 83.6% across all exams)
• 46% of advisers re-sitting the exam passed on their second attempt compared to 55% re-sitters across all exams
• 67% of candidates passed the January exam (compared with an average of 78% across all exams)
• 1079 advisers sat the exam compared with an average of 1323 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 13,440 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 that 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 January exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates.  Exam question areas advisers have underperformed on the January exam are set out below (categorised by curriculum areas).

Financial advice regulatory and legal obligations

• Demonstrating an understanding of different types of advice (eg. personal advice, general advice and factual information) and how they apply to different client scenarios
• Demonstrating knowledge of the components of key advice documentation that is provided to the client i.e. FSG/SOA
• Applying relevant sections of the Corporations Act when identifying responsible provider obligations, including breaches of those obligations

Applied ethical and professional reasoning and communication

• Demonstrating a practical application of due diligence in financial advice
• Identifying sources of judgement and biases and their influence on financial advice
• Applying best interest duty and associated ethical obligations when providing financial advice
• Effectively applying the FASEA code to client various scenarios

Financial advice construction

• Demonstrating an understanding of the context in which financial advice is given and requested and how this impacts decision making.

Existing advisers have until the end of 2021 to pass the exam.  FASEA is offering 5 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 2300 advisers have booked for the March exam, to be held in metropolitan and regional locations and online from 25 to 30 March 2021.    Over 800 advisers have booked for the May exam, to be held in metropolitan and regional locations and online from 20 to 25 May 2021.

To assist advisers preparing for the exam, FASEA provides preparation resources, including practice questions, on the FASEA website.  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.  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 10 exam sittings to date on more than 50 exam days and 650 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 five further exam sittings in 2021.  Unsuccessful candidates may re-sit the exam during this period.

• See the list of passing candidates.
• See the Exam booking information.
• See the Practice questions.

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Registering for March will enable candidates the opportunity to sit the exam a further 2 times if necessary to pass the exam before the end of the transition period on 31/12/2021.  FASEA encourages advisers to register here.

Bookings for the March exam are open and will close on 5 March 2021.

FASEA March Exam Options (sitting 11)

Advisers may take the Exam at a set location between 25-30 March.  Advisers may choose from 16 metropolitan and regional centres across Australia. In addition to metropolitan locations, regional centres: for the March sitting are Cairns, Townsville, Sunshine Coast, Toowoomba, Gosford, Coffs Harbour, Geelong, Bendigo and Geraldton.

FASEA May Exam (Sitting 12)

The May exam is also open for booking. It will be held in 16 centres across Australia between 20 and 25 May.  In addition to metropolitan locations, regional centres for the May sitting are Gold Coast, Rockhampton, Hobart, Port Macquarie, Newcastle, Wollongong, Bathurst/Orange, Wagga Wagga, Tamworth, and Bunbury.

Registrations for the May will close on 30 April 2021.  Over 190 advisers have already registered for the May exam.

Take the Exam online

FASEA’s online remote proctoring Exam solution is available for all candidates across all sittings in 2021.

For information on registering and sitting the exam via the remote proctoring solution, please download the Remote Proctoring Step-by-Step Guide, available on the candidate registration site, here.

Advisers who have booked to sit the Exam remotely, are encouraged to ensue all technical checks and preparation are undertaken well ahead of the sitting time to ensure technical issues are minimised.

January Exam Results (sitting 10)

In January 2021, 1076 advisers sat the Exam via 14 centres and 95 sessions.

Advisers who sat the January Exam can expect to receive results mid-March after comprehensive marking and analysis takes place.

The post Update from FASEA on the Financial Adviser Exam appeared first on AdviserVoice.

Pre-exam webinar series

Advisers who book to sit an exam will be invited to attend a Pre-Exam webinar hosted by FASEA.  The webinar covers exam essentials including;

• an understanding of how the exam is constructed,
• what the exam is testing,
• the type of questions you can expect and how best to structure your responses,
• how to use FASEA’s preparation resources, and
• various tips for how to plan your study and exam day.

There is an opportunity to ask the presenter questions at the end.

The webinar is at no cost to advisers and will be run before each Exam sitting in 2021 and only advisers who have registered for the exam will receive an e-invite.

Exam resources

FASEA encourages all advisers to refer to key resources provided on the FASEA website when preparing for their exam sitting as follows:

1. FASEA FG003 Exam Preparation Guidance, which includes the detailed curriculum and a suggested reading list.
2. The candidate video; and
3. Practice Questions – the FG004 Financial Adviser Exam Practice Questions, is regularly updated before each exam sitting. Advisers who have booked in for the Exam may access the online version of the practice questions which is accessible via their candidate registration account.

Key information regarding the Exam can be found on the FASEA website.

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The government further proposed that the standard-making functions of FASEA would move to Treasury. The remaining elements of FASEA’s legislative functions, including administering the adviser examination, are proposed to be incorporated into the FSCP’s expanded mandate.

Legislation implementing these reforms is intended to be introduced into Parliament in the first half of next year.

FASEA will work closely with Treasury and ASIC to ensure an orderly transition to the new regulatory framework.

In the interim FASEA continues to administer its functions under the Corporations Act including administering the adviser exam and approving bachelor or higher degrees and equivalent qualifications. FASEA notes that the legislated timeframe for existing advisers to pass the FASEA exam by the end of 2021 has not changed and encourages advisers who have yet to pass the exam to continue their studies and sit the exam

FASEA has worked diligently to carry out its functions under the Corporations Act to provide a framework for lifting the ethical, education and training standards of advisers.

Key outcomes of this work to date have included:

1. Developed and implemented seven standards to meet the statutory requirements of the Corporations Act covering:Education Pathways
   – Work & Training (Professional Year)
   – Continuing Professional Development (CPD)
   – Provisional relevant provider term
   – Foreign Qualifications
   – Code of Ethics
   – Examination
2. FASEA, with the support of the Exam administrator (ACER), has successfully offered 9 exam sittings to date on more than 45 exam days and 600 exam sessions. Since June 2019, exams have been offered in capital cities and in 22 regional locations across Australia (with the April and June 2020 exams being remote only exams due to COVID-19 restrictions).
3. Over 10,460 advisers have passed the adviser exams held to date.
4. Overall, 89.5% of advisers who have sat the exam (irrespective of how often it was sat) have passed, representing 49% of advisers on ASIC’s Financial Adviser Register (FAR).
5. FASEA has accredited a wide range of Higher Education Provider (HEP) degrees and courses that meet the FASEA curriculum standard including more than 70 historical courses, close to 100 Bachelor or higher degrees and over 35 bridging courses with the recognition dating back to 1982 (well beyond that which universities would generally recognise).
6. FASEA has recognised prior learning (RPL) for existing advisers by approving education undertaken to attain a professional designation for 6 professional associations.
7. Universities and higher education providers report strong enrollment of existing advisers and potential new entrants in FASEA approved courses. Based on annual returns completed by HEP, as at the end of 2019 nearly 3000 existing advisers are enrolled in bridging courses, existing advisers are enrolled in a further 6,500 graduate diploma subjects and 900 potential new entrants to financial advice are enrolled in bachelor or higher degrees.
8. Approximately 250 new entrants have commenced their Professional Year with over 80 already passing the exam.
9. FASEA’s automated Education Pathways tool has assisted a significant number of advisers to understand their education requirements with over 10,000 uses of the tool.
10. FASEA has assessed over 500 foreign qualifications for equivalence with a FASEA approved degree.

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Result highlights include:

• over 10,460 advisers have passed the adviser exams held to date
• overall, 89.5% of advisers who have sat the exam (irrespective of how often it was sat) have passed, representing 49% of advisers on ASIC’s Financial Adviser Register (FAR).
• 80.6% of candidates sitting the exam for the first time passed the October exam (compared with an average of 85.8% across all exams)
• 60% of advisers re-sitting the exam passed on their second attempt compared to 57% across all exams
• 76% of candidates passed the October exam (compared with an average of 83% across all exams)
• 625 advisers sat the exam compared with an average of 1540 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 during the current extraordinary circumstances.

The overall pass rate of 76% may be attributed to several factors. Firstly, the October exam attracted a much smaller cohort of advisers in general, combined with a higher than usual proportion of re-sitters. For first time exam sitters during October, the pass rate remained at the 80% average.

Over 11,690 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,” FASEA Chief Executive Officer Stephen Glenfield said.

Further analysis of the October exam data has highlighted areas for improvement, particularly amongst unsuccessful candidates.  Exam question areas advisers have underperformed in the October exam are set out below (categorised by curriculum areas).

Financial Advice Regulatory and Legal Requirements

• Assessing whether the adviser has appropriately scoped the advice
• Assessing whether advice recommendations meet the client’s best interests
• Demonstrating knowledge of when key advice documentation is provided to the client i.e. FSG/SOA
• Demonstrating knowledge of the consequences of breaches of financial disclosure obligations for themselves, for clients and for the industry.

Applied Ethical and Professional Reasoning and Communication

• Applying the Code of Ethics to advice scenarios identifying compliance and non-compliance
• Demonstrating an understanding of an adviser’s ethical obligations when advising on complex family structures

Existing advisers have until the end of 2021 to pass the exam. FASEA is offering 6 sittings in 2021 both online and in physical locations (subject to COVID protocols). To maximise the number of potential sittings an adviser may have in 2021, FASEA encourages advisers to register for early sittings next year. Advisers who sit either the January or March 2021 exams will have up to 3 sittings to pass next year. Exam registration information can be found on the FASEA website (link).

Over 1000 advisers have registered for the January exam, to be held in metropolitan and regional locations and online from 28 January to 2 February.

To assist advisers preparing for the exam, FASEA provides preparation resources, including practice questions, online at: – https://www.fasea.gov.au/prepare/. Practice questions are regularly updated and can be found on the FASEA website or via the advisers’ exam account. Feedback received from past re-sit participants in the Exam indicated these resources were useful for their Exam 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.  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 9 exam sittings to date on more than 45 exam days and 600 exam sessions. Since June 2019, exams have been offered in capital cities and in 22 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 six further exam sittings in 2021.  Unsuccessful candidates may re-sit the exam during this period.

The post FASEA releases October exam results appeared first on AdviserVoice.

Advisers who have registered for a Melbourne physical location exam will have the option to sit the exam online or defer to January or later sitting.

The Geelong exam location will continue to be offered to advisers in regional Victoria.

This measure is being taken in light of the evolving COVID-19 pandemic situation in Victoria and in the interests of all involved with the Exam.

The exam administrator (ACER) will contact candidates registered for November Melbourne metropolitan exam sittings to explain their options to sit the exam.

ACER requests candidates ensure their email addresses are up to date in the registration system to facilitate this contact.

FASEA continues to monitor and will act upon the advice of the Federal and State Governments.

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