The Financial Adviser Standards and Ethics Authority (FASEA) has allowed some concessions with respect to the financial adviser exam.
Releasing the legislative instrument and explanatory statement for its Examination standard, the authority revealed that it had reduced the reading time for the exam to 15 minutes within a total 3.5 hours sitting period.
It said it had also clarified that exam content under the topic of Financial Adviser Regulatory and Legal Requirements would cover the Tax Agents Services Act only and not the broader requirements of the Tax Practitioners Board.
It said that it had also noted that it would consider the addition of further exam centres in 2020 for relevant providers sitting the exam in regional areas depending on adviser interest and availability of facilities.
Comments
Im still not going to do the exam. We are better off just providing General Advice.
Also, since vertical integration has been encourged by the Hayne RC and commissions for insurance are likely to be banned you are better off just providing product specific General Advice only.
Independent advisers are getting phased out and the investment/insurance companies will not want to hire full financial advisers because they will be forced to act in the best interests of clients. These companies will be looking for General Advice specalists because then they will be able to sell their employers products without having to make sure it is in the best interests of their client.
Financial advice is only for HNW customers.
Terrible isn't it - investment companies being forced to act in the best interest of clients (rather than themselves). Who would have thought it.
A reduction in reading time!
Wow. I feel so much better about the exam now.
I'd love to know what other self-employed advisers will do regarding FASEA education. Based on the outcomes of the RC, in particular zero commissions for insurance advice, is there much point doing the education if it is going to be much harder to make money? I'm a holistic planner and heavily rely upon insurance advice to earn an income. I know it's easy to say 'charge a one off fee' for a client that only wants insurance advice, but my experience is that client's simply won't pay for it. We are now forced to increase our fees because of cut backs in commissions, compliance costs and education. My concern is that i won't be able to attract enough clients willing to pay high advice fees as it will be out of reach with the mum and dad clientele i deal with. I'm just struggling to decide what to do. Do I stick it out, do the education and see what happens, or do i simply leave the industry now to save time, education costs and potential heartache later? Decisions, decisions...
Michael19 - I'm in your boat and it is very different than being an employee. Put simply, even if you can get passed all the issues you raised, there is the additional liability building up in the practice with BID and more and more compliance. For some reason some seem to believe that once we get this round of education completed it will all be OK - IT WILL NOT. ASIC will be looking again at those that are left in what is it 2022 and when you really look at BID - I suspect is so open to interpretation that you will never survive a full audit from ASIC. Remember, you must put the clients interests before yours. With compliance being what it is that cost must be passed on - so a $5,000 fee needs to deliver the client $5,000 plus benefit - easy to demonstrate sometime and other times not. I'm going.
The only effective change they've made is a reduction in reading time by 15mins? Give me a break. This is an extreme disappointment to say the least. FASEA have proven their arrogance by not listening to any reasonable feedback provided to them by any of the professional associations. nor anyone else. Get rid of FASEA and have just one regulator looking after all things financial advice. At least with ASIC there are no conflicts.
Like others here, i cant see a vaklid future after 30 odd years and im now over 55, so the risk is too great and the rewards are not comersurate to the work or study. Im CFP and done many courses additionally. I take offense that i need also to study to be honest. My parents instilled that. I usually achieve 60 to 90 CDP a year which is well above whats required. I can longer cope and its effecting my health far to much. I have to turn off the lights now. Bye
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