What is the current forecast of FASEA passes?

The forecast pass rate for the Financial Adviser Standards and Ethics Authority (FASEA) exam for the September and November exams is at 50% and the total number expected to have passed by 2021 will be 15,552, according to Wealth Data.

Wealth Data’s forecast included the 1,700 advisers who attempted the exam in September and a further 800 who are expected to sit the exam in November.

The forecast assumed the latest number of advisers who had already passed the exam and were listed as ‘current’, as per the Australian Securities and Investments Commission (ASIC) Financial Adviser Register (FAR) that was at 14,302.

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“A total of 2,500 and assumed a pass rate of 50%. This is quite low for a pass rate and is based on the fact that the majority will be re-sitting the exam and in July, the pass rate for advisers re-sitting the exam was only 39%,” Wealth Data’s director, Colin Williams, said.

This forecast did not take into account advisers who might attempt the exam next year nor advisers who failed at least twice in 2021 and had more opportunities in 2022 to pass the exam.

Also, the forecast was based on the assumption that all provisional advisers (PAs) on the ASIC FAR had passed the exam.

According to Williams, the estimate of 15,552 was reasonably consistent all year with estimates of between 15,000 to 16,000, however the percentage forecast of passes at 82.35% could be misleading as it was based on current advisers.

“When FASEA was introduced, there was a mad rush to become an adviser before year end 2018. At that time there was 27,930 advisers. Therefore, the forecast pass rate only represents 55.68% of advisers who started the FASEA journey,” Williams added.

“We have been able to include 11,901 pass results in our data, which we gained from the FASEA exam ‘Successful Candidates List’ which is public but not all advisers who passed the exam are on the list.”

According to Wealth Data, FASEA had around 300 ‘successful’ candidates who did not have an adviser number and therefore they were hard to track.

Source: Wealth Data

In terms of the biggest losses of advisers this week, IOOF as a group had a net loss of five advisers and was followed by AMP Group and Synchron, both down by four advisers.

Additionally, a long list of licensee owners losing a net one (-1) each, including Ord Minnett, Perks Private Wealth, Mancell Family Trust who own FYG Planners.

At the same time, the total number of advisers decreased by 15 to 18,872.

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I'm interested to know what advisers and their licensees are looking at for 1) those advisers who have chosen not to sit the exam, and 2) those advisers who, despite their best efforts, will not be able to pass before the extended cut off. Are licensees facilitating in-house mergers between IFA practices, acting as BOLR and offering to roll the business into their salaried channels, offering to put a salaried locum adviser in place to continue servicing clients, leaving it totally up to the adviser to make their own decisions such as selling on the open market? Some licensees have contemplated allowing advisers (business owners) to stay on where they have an adviser in the practice that can continue servicing clients and others have said it's too risky because they can't effectively monitor whether the "former' adviser is continuing to provide advice.

And best of luck to those advisers who have yet to pass it

I feel very sad that so many great advisers have had to leave because of the huge pressure on them. And its by nowhere over yet! With some having to do 8 university level subjects. Those who need to get them done should really get started urgently as they are such a lot of work and we are not prepared for this level of assignments and pressure. Good luck.

Yes Annabel, I think if they are struggling to pass FASEA, they will not cope with the uni subjects for sure.

Not sure about that Bozo - if you fail a university subject its more than likely you do not understand the material well enough. Not sure I can say the same about the FASEA exam.

The mortgage broker that snuck into WA/AFL final is currently sitting in WA jail. Upon his release NT police will charge him with fraud. This guy is currently on the FAR but will soon be struck off with a fraud conviction. Don't forget to remove him with the future FAR estimates.

already ceased on far.

FAR out!


Not mentioned is the number of advisers who sat the exam as a bit fuck you but will still walk despite passing.

I'll be very surprised if there are 5,000 advisers left after the 2024 AQF8 Uni degree requirements. Further, I think there will be only a small, very small percentage of that 5,000 who are pure risk advisers. The FARCE-IA exam is irrelevant enough for risk advisers but the full AQF8 requirements are just ludicrously irrelevant to a risk adviser. It is nonsensical the life companies have not lobbied for a professional separate recognition for risk advisers. It is a profession with a completely different discipline to investment advice and full financial planning. The life companies have deep pockets and should have been championing this for THEIR advisers already. I've seen the writing on the wall, it isn't getting better in terms of workload, govt interference or compliance burden and danger to the adviser. Too much unnecessary stress. I'm out this month - at age 60, about 15 years early than planned! I'm not Robinson Crusoe either and many more to follow.

The FASEA exam is about law & ethics. Specialists in insurance, SMSF, or stockbroking who claim the FASEA exam is irrelevant to them, are effectively saying that law and ethics is irrelevant to them.

There should be no such thing as a "risk adviser" anymore. You are an adviser or you're not.

You CANNOT provide risk advice without considering the impact on superannuation and retirement planning

You are correct that there is no such thing as a risk adviser because they will be extinct shortly. Reap what you sow FSC and insurance companies. Hasta la vista baby!

The old riskys arent happy they cant just sit back on the trail from the books. Who in thier right mind would open a business purely based on insurance in the current climate? Low commission, large clawback periods and inferior products. This bleating of the riskies is just kefuffle, they dont want to write these new products, they just want to sit back on the ongoing commission. Well if you want that you still need to study and pass the exam. Its not hard, im 50 and ive done it. This carve out whinging and whining is just self interested navel gazing. These riskies sold policies at 130 to 140% upfront, they have made really good money over the years flogging products, now its time to retire. The industry has changed, stop trying to drag us back to the "good old days" as they are history, gone are the cruises , paid for functions, long lunches and other kickbacks the old riskies enjoyed for years. You've had your time.

i sat the exam in july. i did the fasea practice exam and marked at 90% without cheating. Did the kaplan practice exam 89%. Sat the exam and got a fail. i was shocked ! now sitting in November for the 2nd time. im scared and have anxiety. i have done uni part time for last few years so study not new. really im sorta lost now.

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