76% of advisers who sat the November Financial Adviser Standards and Ethics Authority (FASEA) exam passed, compared to an average of 83% across all exams.
FASEA released the latest exam results data today, noting that 11,241 advisers had now passed the exam, representing 52% of advisers on the Financial Adviser Register (FAR)
The authority noted the following:
- 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; and
- The exam was subject to ACER’s comprehensive marking approach and was set at a consistent standard to prior exams.
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.
The FASEA announcement said further analysis of the November exam data had 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; and
- 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; and
- 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 six 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,” the FASEA announcement said.
Over 1300 advisers have booked for the January exam, to be held in metropolitan and regional locations and online from 28 January, 2021 to 2 February, 2021.
