FASEA pass rate better than CFA

The pass rate of the Financial Adviser Standards and Ethics Authority (FASEA) candidates that passed the exam after two or more sittings at 65% is better than Chartered Financial Analyst (CFA) exams, according to FASEA.

In answers to questions by Senator Ben Small, FASEA said across 12 exams sittings so far there were 1,516 candidates who had completed two or more sittings, and the pass rate for this group was 65%.

“This pass rate compares favourably with other certification assessments in the industry,” FASEA said.

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“For example, the Level I and Level II exams run by the CFA Institute report pass rates of between 40% and 50% respectively.”

FASEA said it considered it an “achievable exam for prepared advisers” given the overall 89% pass rate across the 12 exams.

“The credit-level standard required to pass the Financial Adviser Examination reflects the minimum level of competency required for professional practice,” it said.

“A credit-level standard is commonly accepted as requiring a percentage score of at least 65 and is a widely accepted basis for awarding a pass in licensure and certification exams.”

FASEA noted the percentage of exam candidates that achieved a raw mark of between 50% and a credit level standard (65%) and had therefore failed were:

  • Exam 1 June 2019 – 7.77%
  • Exam 2 September 2019 – 10.14%
  • Exam 3 December 2019 – 12.51%
  • Exam 4 February 2020 – 9.68%
  • Exam 5 April 2020 – 11.91%
  • Exam 6 June 2020 – 12.67%
  • Exam 7 August 2020 – 4.54%
  • Exam 8 October 2020 – 4.64%
  • Exam 9 November 2020 – 8.86%
  • Exam 10 January 2021 – 10.66%
  • Exam 11 March 2021 – 13.25%; and
  • Exam 12 May 2021 – 13.52%.

FASEA said the average number of attempts needed by a candidate to pass was 1.08, and that this suggested the vast majority of candidates who passed did so on their first attempt.

“The maximum number of attempts by an individual relevant provider across the 12 sittings to date is five. Eight advisers had this many sittings and four ultimately passed on the fifth attempt,” FASEA said.

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That is like comparing a Commodore to a Ferrari

exactly, the CFA is the gold standard in qualifications. its' better than any finance qualification I know or have heard of, and the breadth of it is simply amazing.

all you need to do is to buy 1,000 books of questions from Kaplan schweser, forget about reading the materials, and bang it out and you will make it through all three levels with no issue.

the last CFA I met (admittedly he had done it a while ago) I asked what an investment policy statement is and they had no idea what I was talking about.

and also, the person who sat the exam five times to pass it must have been a "ca".

Which goes to prove that statistics, if tortured sufficiently, will admit to anything.

You can not seriously compare that farce to the CFA. That is like comparing a first aid course with brain surgery.

How ridiculous... what designation do I now receive having passed the exam?

You can operate a financial services business - that's what!!

Are letters after your name more important?

Good point.

Haynes, FASEA, ASIC and other regulators certainly believe so - hence the push for MORE professional designations (letters after your name) before a person with 30 years experience, CFP, SMSF accredited, fully up-to-date with CPD, sticking to 'their own lane', zero client complaints in 30 years..... to be allowed to continue doing what they have been doing without any problems for decades. Letters after your name: that is all they value.

ok... and what did anyone learn from doing the exam?

They learned that regardless of whether you are the type of person that 'does right' by your clients or doesn't, as long as you can pass an ethics test then you must be a marvelous person.

Other than that, not much.

I learnt that apparently it isn’t unethical to prescribe your own textbook as mandatory reading when you sit on the board, and are the ethics dictator to the industry.

I learnt that as well. Good thing too, as selling ones own in house product was such a big issue.

Shouldn't the FASEA pass rate be 100%? Why is anyone patting themselves on the back for forcing us to go through an exam we shouldn't have even had to take in the first place!

It's embarrassing to even say that out loud. CFA being famous for low pass rates. This is resignation level obfuscation. Its incredibly insulting to even try to utter that to an audience, you must be expecting senators to be so ignorant and unaware of even the basics.

Wow, we have hit peak ridiculous.

Comparing the FASEA exam to the CFA.... CFA having been known as the most difficult designation to attain for some time now.

Anyone who has passed the CFA commands respect... Its grueling and a true test of knowledge. The FASEA exam is a joke, and not technical in the slightest. Trying to compare the two is representative of how our of touch this organisation is.

the cfa pass rates are managed to make it appear hard, why don't you enrol in it, It is $1,500 bucks per level and then don't worry about reading the material, just get the question bank from Kaplan schweser it's $600 bucks. you will pass no problems.

just do the questions, its' a memory test.

Absolute tripe.

If you have seen the CFA course content and know what's in the exams, you wouldn't be saying what you are saying.

The comparison is comical at best.

ok if you say so. you must not have met anybody who has a CFA. ask them quietly how they passed, make sure they are aged less than 40. they will tell you they studied a lot (of course, didn't everyone become a lawyer to do justice and serve a noble purpose and become great humans) but then they will tell you their secret sauce, Kaplan schweser trust me if you don't believe me. it's $2k and tax-deductible

worthwhile for you to test it since you value it so much. give it a go. 100% guaranteed, and yes I have seen the content (even the calculator you take into the exam has to be the right type). no one studies it, it's too voluminous hence the secret sauce.

that's why the CFA is valued highly in Asia countries they value it so much and because they are very good at memorizing.

so you are worried you won't pass. That sounds like a fair challenge to me. why don't you pay the $2k for level 1 and let us all know?

c'mon you can do it SD!

SD is not a pussy, he can do it. c'mon SD. LIFT>

I have passed level 1…. And the FASEA exam obviously.

And let me assure you the FASEA exam is a genuine cakewalk in comparison. Not even 1% of the difficulty.

Suggesting they are similar is the worst take I have seen in years.

This! Bugger it I’m going to take on the challenge. My rote learning was always pretty solid and for $2k I’m in. It’d be a shame if they, you know, rotated out the question set and you paid for old material.

Can anyone explain the huge disparity between the months of Aug and Oct 2020 in respect to those between 50 and 65%? Arent the exams all meant to be marked on equal footing and difficulty?? This won't get answered.

Easy, all the smart folk waited a year or so to do the exam to gauge the exam response and feedback, hence the lowest fail rates.
Exam 7 August 2020 – 4.54%
Exam 8 October 2020 – 4.64%
The most recent exams had many not so smart folk who only recently realised the FAESA exam and other requirements were not going to go away as the fools told them it would and had to sit the exam with a chip on their shoulder and with a negative mindset, hence the higher fail rates.

And that would make sense how? Given all but one sitting prior were all double digits as well.

Easy. The smartest group waited and hence the lowest failure rates for those two exams.

Thank god FASEA are being disbanded. They really are clueless. CFA is a global exam and standard for financial asset analysts for wholesale and institutional investment firms. FASEA is minimum standard and is largely based on legs and regs for financial advisers to Mum n Dad...doh!

Surely your joking Mr Feynman! How can this exam be compared to a CFA exam?

my reading of it is, he is saying the FASEA is actually an easy exam to pass, as the pass rates are higher than the CFA i.e. it has been set at a reasonable, not too arduous standard.

you are correct. the fasea exam is a very easy exam. a lot of the fail is from accountants, mainly "ca" types.

The CFA for 900 hours study is about 8 subjects at postgrad level. The FASEA exam is no harder than 1 postgrad ethics unit.

How dare FASEA compare itself to CFA. Do the people running FASEA know what the CFA designation is (not surprising they don't). CFA even at Level 1, without being a Charterholder, can get candidates one maybe two exemptions in a post graduate qualification. What does passing the FASEA exam get?

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