Why are advisers not reporting passing the FASEA exam?

This week’s analysis has further confirmed drops in adviser numbers, with another loss of 37 advisers, and with the total number of actual advisers brought to below 20,500.  

At the same time, HFS Consulting, which examines weekly adviser movements from the Australian Securities and Investments Commission (ASIC’s) Financial Adviser Register (FAR), has found that a large number of those advisers who had passed the Financial Adviser Standards and Ethics Authority (FASEA) exam failed to report it back to ASIC. 

HFS’ director Colin Williams said that, as a result, according to the data from the FAR there were only 120 advisers who have reported passing the FASEA exam while a total of 3,361 advisers held one or more FASEA approved qualification. 

This stood in stark contrast with the FASEA’s announcement from February which stated that more than 11,000 advisers had passed the exam. 

“Given the media post Royal Commission and currently the coverage of Melissa Caddick as to whether she should be called an ex financial adviser, one would have thought that it was vital for all advisers and licensees ensure that adviser qualifications are current on the ASIC FAR,” Williams said. 

“The ASIC Money Smart Website is probably the most popular used by the public to check out a prospective adviser and the details at Money Smart for each adviser is sourced from the ASIC FAR register.” 

Percentage of advisers who have at least one FASEA approved qualification (licensees with 20 or more advisers)

Source: HFS Consulting 

In total, there were 50 adviser roles which were appointed this week, which included 48 switches and two new provisional advisers, while 88 adviser roles ceased, giving the net total of -38 roles. 

This means that 27 licensees made net adviser role gains while 45 licensees saw net adviser losses for the week. 

According to HFS, RV Wealth, controlled by Fitzpatricks Private Wealth, had the largest loss with (-8), and none of these advisers being currently shown as appointed elsewhere, and was followed by Godfrey Pembroke and GWM Financial Planning of which each lost six advisers each. 

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Here are the reasons:

1. Requiring advisers to self-report that they passed the exam is beyond dumb.
2. You have to pay a fee every time you update something.
3. There are not enough education slots in the Financial Adviser Register to record everything.

How about FASEA reports it to ASIC and they update it automatically?

There isn't any field or data on the FAR to indicate the Adviser has passed the FASEA exam.
It is simply not recorded there (though some Advisers have incorrectly recorded their pass under 'Qualifications').
An AFSL reports to ASIC that an Adviser has passed the FASEA exam. That's the process.
See also the FASEA Exam Successful Candidate list. However that's not complete with 7,982 names only as many who have passed have not obtained their "second certificate" and consented to be on this list.
Some work to do here Colin!

Why, because Advisers hate FARSEA.
The whole process and exam have been handled so poorly and Advisers simply have ZERO Respect for FARSEA.
As for clients, they could NOT care less and don’t even know what FARSEA is.

I've been trying to update this on the ASIC register for a while now, however the ASIC site has an error. My colleague was able to process his change without an issue, however we can't update my details.

I've asked ASIC for assistance to correct this twice, but just get directed back to the instructions.... not overly helpful.

HR, please see my earlier post above

Thanks JP.. my colleague had a tick box come up for the FASEA exam on his profile which was pretty simple to complete. I didn't get the same thing.

I'll take your advice and just note it under education.

Cheers, H

The way it is done is via 'ASIC Connect' - 'Lodgments and Notifications' - Maintain Adviser / Authorized Representative - select: 'Exam / Qualifications'. There is field for the Exam.
I'm interested to know how HFS knows that only 120 advisers have notified ASIC because even when an adviser notifies ASIC that they have passed it is not shown on the Financial Advisers Register - it is not public information.

Yes, that's right Billy. Don't add it as a qualification (per my earlier post).

Sounds like HFS is using pseudo analysis of dodgy data to generate free PR. I wouldn't read too much into their "findings".

who cares anyway?

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