Announcements

FASEA releases November Exam Results

Dec 22, 2020Media Releases

MEDIA RELEASE

FASEA today released exam results from the ninth Financial Advisers Exam held in November 2020.

Result highlights include:

  • 11,241 advisers have passed the adviser exams held to date representing 52% of advisers on ASIC’s Financial Adviser Register (FAR).
  • overall, 89.5% of advisers who have sat the exam (irrespective of how often it was sat) have passed.
  • 80% of candidates sitting the exam for the first time passed the November exam (compared with an average of 85.8% across all exams)
  • 58% of advisers re-sitting the exam passed on their second attempt compared to 59% re-sitters across all exams
  • 76% of candidates passed the November exam (compared with an average of 83% across all exams)
  • 1016 advisers sat the exam compared with an average of 1490 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 12,573 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 (link)” FASEA Chief Executive Officer Stephen Glenfield said.

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

Financial Advice Regulatory and Legal Requirements

  • Assessing whether the adviser has appropriately scoped the advice
  • Demonstrating an understanding of the 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
  • Demonstrating an understanding of the different types of advice and their legal obligations when considering appropriate financial products.
  • Demonstrating the ability to identify breaches of best interest duty and subsequent notification obligations.

Applied Ethical and Professional Reasoning and Communication

  • Demonstrating an understanding of an adviser’s ethical obligations when advice is not in the client’s best interest
  • 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 book 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 booking information can be found on the FASEA website (link).

Over 1300 advisers have booked 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 (link).  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 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 Financial Adviser Standards and Ethics Authority Limited was established in 2017 to set the education, training and ethical standards of financial advisers in Australia.

 

 

The Financial Adviser Standards and Ethics Authority Limited was established in 2017 to set the education, training and ethical standards of financial advisers in Australia.