The Stockbrokers and Investment Advisers Association (SIAA) has made additional recommendations following the proposed changes to the financial advice exam delivery.
Last month, the government announced draft legislation to amend the financial adviser exam, which included removing short answer questions and slashing the requirement that only provisional relevant providers and existing advisers can sit the exam.
The draft explanatory statement said exams based on multiple choice questions “create efficiencies” by enabling computer marking to replace manual marking. This could consequently reduce the cost of administering exams and response times for exam candidates receiving their results.
As a result, ASIC delayed the first exam date of 2024 from 15 February to 26 March to “allow sufficient time to implement required changes to the exam”.
SIAA has since expressed its support for the proposed amendments in a Treasury submission made on 10 January 2024.
In particular, the professional body “strongly supports” the exam to only consist of multiple choice questions and expanding the eligibility criteria to allow more entrants to sit the exam.
However, SIAA’s submission also made further recommendations to create additional efficiencies that will reduce friction and encourage more professional year (PY) candidates into the industry.
The first point stated: “Candidates should be able to sit the exam at any time and not be restricted to exam blocks. The exam should be available on request or on a rolling basis. This would prevent the current delays in PY candidates being able to complete their PY.”
SIAA previously lobbied for greater flexibility in the exam timetable in its first Treasury submission in September 2022.
“We argued that the timing of a candidate’s movement through the quarters of the professional year should not be bound by an exam timetable but by their progress. Given the exam is online and venues and supervisors do not need to be booked, we argued that exams should be available to sit at any time and markers commissioned on an ‘as needs’ basis.
“As the exam is online, there is no reason why it should not be available on request or on a rolling basis.”
The recommendation echoes experiences from current candidates who often have to wait for certain exam blocks to sit the exam.
“[The delay] has pushed back my ability to progress through my professional year and therefore advance my career, especially if I don’t pass first go,” Rachel Hubbard, financial planning assistant and PY candidate at IPS Wealth Management, previously told Money Management.
“It will be around five months between exam sittings with the next date being pushed back. It may also be frustrating for many businesses, who are waiting for their professional year candidates to become advisers so they can service more clients.”
The body’s submission also highlighted the cost to sit the exam, which remains a key issue for PY candidates.
“Once the proposed changes are implemented, the cost to the exam provider should reduce significantly and this should be passed on to the exam candidates in the form of a lower exam fee,” SIAA wrote.
Moreover, SIAA pushed for the exam to provide a broader range of scenarios than just those based on financial planning so the exam reflects the full spectrum of financial advice.
The submission continued: “Questions that have two correct answers requiring the candidate to guess the ‘most correct’ answer should be removed and replaced with questions that test the candidates in ways that ensure they know the material rather than trying to trick them.”
Finally, the professional body encouraged for more tailored feedback to be given to unsuccessful candidates to assist them in improving for the next exam sitting.
It argued that current feedback is not individual but highly generic, which fails to clarify why the student answered a question incorrectly.
Yes kets make it so easy that it has no meaning at all. Why don’t we provide the answers as well save a lot of time for everybody! Wow I have been in this industry 30+ years we go from being professionals to crooks back to professionals now we go to just anybody again!!