March exam highlights problem areas

Demonstrating knowledge of advice documentation, practical application of due diligence in financial advice, and the application of the Financial Adviser Standards and Ethics Authority (FASEA) code of ethics were among the problem areas during the March sitting of the FASEA exam.

FASEA announced a pass rate of 69% for the March exam, with 74% of first time candidates passing.

The exam tested three areas: financial advice regulatory and legal obligations, applied ethical and professional reasoning and communication, and financial advice construction.

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Under financial advice regulatory and legal obligations, candidates underperformed in:

  • Demonstrating knowledge of the components of key advice documentation that was provided to the client;
  • Applying relevant sections of the Corporations Act when identifying responsible provider obligations, including breaches of those obligations; and
  • Demonstrating an understanding of the Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance.

Under applied ethical and professional reasoning and communication, candidates underperformed in:

  • Demonstrating a practical application of due diligence in financial advice;
  • Identifying sources of judgement and biases and their influence on financial advice;
  • Applying best interest duty and associated ethical obligations when providing financial advice; and
  • Effectively applying the FASEA code to various client scenarios.

Under financial advice construction, candidates underperformed in:

  • Demonstrating an understanding of the context in which financial advice was given and requested, and how this impacted decision making.

Current advisers had four more sittings left until the 1 January, 2022 deadline.

Registrations for the May exam had closed at the end of last month, but advisers still had until 25 June to register for the July exam.

Stephen Glenfield, FASEA chief executive, had previously said to Money Management that the three-month rule – which prevented advisers from sitting back-to-back exams – would stay in place.

This meant that advisers who registered for the July exam would have two chances to attempt the exam, but those that do not would only be able to attempt the September or November exam.

Remaining FASEA exam dates for 2021

 

Exam Dates

Registration Dates

Locations

Sitting 12

20 May - 25 May

Closed

Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Gold Coast, Rockhampton, Hobart, Port Macquarie, Newcastle, Wollongong, Bathurst/Orange, Wagga Wagga, Tamworth, Bunbury and Remote Proctoring.

Sitting 13

15 July - 20 July

5 April - 25 June

Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Darwin, Gosford, Sunshine Coast, Townsville, Mackay, Albury/Wodonga, Geelong, Ballarat, Traralgon, Launceston and Remote Proctoring.

Sitting 14

9 September - 14 September

31 May - 20 August

Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Hobart, Gold Coast, Cairns, Newcastle, Coffs Harbour, Port Macquarie, Wollongong, Bendigo and Remote Proctoring.

Sitting 15

4 November - 9 November

26 July - 15 October

Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Darwin, Sunshine Coast, Rockhampton, Toowoomba, Gosford, Bathurst/Orange, Geelong, Launceston and Remote Proctoring.

Source: FASEA




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Out of interest, does anyone know if they are running exams for next year for the ones that hadn’t passed but were still planning to?

I suspect they will for new entrants. Those that have not passed are unable to practice until the do pass and have the prescribed education. That is to say the education extention is no longer applied.

I believe those existing advisers who haven't passed by Jan 2022 have to come back in via the "new entrant" pathway, which also requires a professional year. I wonder if we will see advisers with 2 years experience who are good at passing exams, supervising those with 30 years experience who are not.

I wish they did the same for drivers licence to get rid of half the drivers and reduce traffic.

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