FASEA releases draft exam guidance
The Financial Adviser Standards and Ethics Authority (FASEA) has released proposed guidance on the Financial Adviser Examination that is flagged to form a compulsory part of its much-debated education reforms.
The Authority proposed that the exam would test advisers’ practical application of knowledge in:
- Corporations Act (emphasis on Chapter 7 – financial services and markets);
- The FASEA Code of Ethics;
- Behavioural finance – client and consumer behaviour, engagement and decision making;
- Financial advice construction – suitability of advice aligned to different consumer groups; and
- Applied ethical and professional reasoning and communication.
All advisers registered as authorised representatives prior to 31 December, 2018 would have to pass the exam before the start of 2021. From January, next year, new entrants or those returning to the industry would have to pass the exam after completing their tertiary degree and before commencing their professional year.
The exam would consist of both multiple choice and short answer questions, and advisers would have two chances to re-sit the exam.
FASEA was currently undertaking a procurement process with specialist service providers around the exam’s development and delivery.
Feedback submissions to the Authority on the proposed exam would close 31 July, at five pm.
AUTHOR
Hannah Wootton
Recommended for you
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
As high-net-worth investors look to opportunities in alternatives, Praemium has revealed that advisers who can deliver on this demand tend to have deeper relationships with their clients as they are seeking more involvement in the investment process.
As adviser-client relationships stabilise, Investment Trends’ latest report said digital hybrid advice models are key to addressing the supply-demand gap in Australia.
A Koda Capital partner and executive team member, who joined the firm from almost a decade in advice roles at AMP, has departed the wealth manager.
