FASEA Update - Financial Adviser Exam
By 31/12/2020, all existing advisers need to pass the professional exam to continue to operate in the industry. FASEA has outlined the examination parameters and nominated Australian Council for Education Research (ACER) to run the exam. The cost of the exam will be $540.
The exam will contain at least 64 multiple choice and 6 short answer questions covering the following topics:
Financial Advice Regulatory and Legal requirements (including Corporations Act chapter 7, AML, Privacy and Tax Agents Services Act (TASA) 2009)
Financial Advice Construction – suitability of advice aligned to different consumer groups, incorporating consumer behaviour and decision making
Applied ethical and professional reasoning and communication – incorporating FASEA Code of Ethics and Code Monitoring Bodies
The pass rate is 65% with a requirement to achieve at least 70% in questions relating to ethics. You will be able to resit the exam only when the next version of the exam is issued, which may be up to 3 months later.
Registrations for the exam are now available and instructions on how to register are available here. You will need to register via the portal by following the instructions provided.
The following dates are currently available for exams in the following cities Sydney, Canberra, Melbourne, Brisbane, Townsville, Adelaide, Perth, Darwin and Hobart:
1st sitting 2019 between 20 – 24 June 2019, with registrations open between 13 – 31 May 2019
2nd sitting 2019 between 19 – 23 September 2019, with registrations open between 12 – 30 August 2019
The exam will be completed online using dedicated computers in specific exam locations. – so no access to your mobile or laptop!
FASEA has issued Exam Preparation Guidance that includes a recommended and extended reading list, as well as some guidance on the exam itself. This can be found here on the FASEA website. In addition, practice questions have been made available here.
I have been asked a number of times what happens if you do not pass the exam by 31/12/2020. FASEA have advised that in that case you will no longer be able to provide financial advice, and will no longer qualify as an ‘existing adviser’ to access the transitional provisions. This means you would be considered a new entrant to the industry and have to first complete the qualifications, the exam AND complete the professional year.
Given this information, I suggest that have a look at the Exam Preparation Guidance and Practice Questions to determine how much study time you may require and consider if you wish to attend the first sitting. You may also need to consider how you wish to prepare for the exam, and there will likely be training courses offered for those that prefer a structured environment.
In the meantime, if you have any questions, please do not hesitate to contact me.