Over 20% of FAR yet to pass FASEA exam
There are still 4,213 advisers currently on Australian Securities and Investments Commission (ASIC) Financial Adviser Register (FAR) yet to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam.
Over 14,630 of advisers on the FAR had passed the exam, as of the results of the September exam which had a pass rate of 61%, while the latest numbers from Wealth Data showed there were 18,843 advisers on the FAR.
Existing advisers who had not sat the exam twice must pass by 1 January, 2022, but advisers who had failed twice were eligible for the extension which was granted to 1 October, 2022, and legislated after the Better Advice bill passed the Senate.
Over 1,500 advisers had booked for the November exam which would be held from 11 to 16 November, 2021.
Registrations for the November exam would closed on Friday, 29 October and was open to those who did not pass the September exam.
When it came to areas exam sitters struggled in, FASEA found understanding the Corporations Act, breach reporting, and understanding the code of ethics were key problem areas.
Under financial advice regulatory and legal obligations exam takers underperformed in:
- Evaluating key documentation in terms of Chapter 7 of the Corporations Act;
- Applying chapter seven of the Corporations Act 2001 when evaluating case studies and identifying responsible providers obligations and breaches of those obligations;
- Demonstrating knowledge of legal requirements for both individual and licensee; and
- Applying Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance.
Under applied ethical and professional reasoning and communication exam takers underperformed in:
- Demonstrating an understanding of the importance of a code of ethics;
- Identify when and under what conditions a practitioner should refer a client; and
- Identifying sources of judgement and biases and their influence on financial advice.
Under financial advice construction exam takers underperformed in:
- Demonstrating an understanding of the context in which financial advice is given and requested and how this impacts decision making.
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