Over 20% of FAR yet to pass FASEA exam

There are still 4,213 advisers currently on Australian Securities and Investments Commission (ASIC) Financial Adviser Register (FAR) yet to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam.

Over 14,630 of advisers on the FAR had passed the exam, as of the results of the September exam which had a pass rate of 61%, while the latest numbers from Wealth Data showed there were 18,843 advisers on the FAR.

Existing advisers who had not sat the exam twice must pass by 1 January, 2022, but advisers who had failed twice were eligible for the extension which was granted to 1 October, 2022, and legislated after the Better Advice bill passed the Senate.

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Over 1,500 advisers had booked for the November exam which would be held from 11 to 16 November, 2021.

Registrations for the November exam would closed on Friday, 29 October and was open to those who did not pass the September exam.

When it came to areas exam sitters struggled in, FASEA found understanding the Corporations Act, breach reporting, and understanding the code of ethics were key problem areas.

Under financial advice regulatory and legal obligations exam takers underperformed in:

  • Evaluating key documentation in terms of Chapter 7 of the Corporations Act;
  • Applying chapter seven of the Corporations Act 2001 when evaluating case studies and identifying responsible providers obligations and breaches of those obligations;
  • Demonstrating knowledge of legal requirements for both individual and licensee; and
  • Applying Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance.

Under applied ethical and professional reasoning and communication exam takers underperformed in:

  • Demonstrating an understanding of the importance of a code of ethics;
  • Identify when and under what conditions a practitioner should refer a client; and
  • Identifying sources of judgement and biases and their influence on financial advice.

Under financial advice construction exam takers underperformed in:

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

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Looking at the areas in the article where advisers didn't do so well, I can't help but think that many advisers have never really had to know the intricacies of chapter 7, or a licensee's obligations regarding breach reporting etc. Licensees have historically "taken care" of all that and seen the value of an adviser not being a regulatory expert but in sitting in front of their clients, building and maintaining relationships and handholding their clients along their financial journeys. For those advisers who have totally relied on a licensee's compliance team to tell them what's compliant, paraplanners to write the SOA/ROA and put the technical detail and modelling into plans, client managers and administrators to implement everything and ensure FSGs, PDSs and FDSs are sent out on time, researchers and investment managers to make all the investment decisions etc - has it in fact "weakened" them by allowing them to outsource not only their skill set but their ownership and responsibility of the end to end advice process?

Not just weakened them, but misled them. A lot of dealer group "compliance" processes are actually their internal business process. Not necessarily the law. I get the impression a few people have been caught out answering FASEA exam questions based on their dealer group processes rather than the law.

To be completely honest, there is no way I would be bleating about passing this on Linkedin given there have been many years to complete it.

I think it paints some as incompetent to leave it this late. I would be very reluctant to deal with a planner who needed extension after extension to pass the base test for being a financial planner

Couldn't agree more, its quite embarrasing.

I got to agree. That bloke with the ugly jumper on linkedin the other day holding his passed FASEA exam certificate was just downright embarrassing. Let alone the other 1000 or so previously over the past 2 years.

You both are quite pathetic. I sat the exam for the first time this year and passed. There's many reasons why I haven't sat the exam till now: including acing postgraduate at the top uni in Australia and getting a uni medal. There's many reasons why some delayed the exam and has nothing to do competence for their job.

How about you "industry elite" provide your names so we can bow in all your perpetual glory? I suspect you both are average in all aspects of your life which is why you name out individuals anonymously.

You both are the reason the industry is so disjointed and cant work together to get positive outcomes for everyone...

"Acing postgraduate at the top uni in Australia". Yeah right. None of the top unis in Australia offer financial planning degrees.

That "uni medal" of yours, if it even exists, comes from a glorified TAFE.

No, you are the reason there is a disjointed industry. If you had of just sat the exam within the original required time frame, there would be no debate from others.

If you think "industry elite" are those that can follow a simple guideline well we as an industry have problems

Sweetheart, I didn't study financial planning for postgrad so yes, my comments still stand. P.S. who art thou? I would love to introduce myself at one of the planning events...

Put your full details up and I’ll respond

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