Advice documentation a major exam problem area

Knowledge on advice documentation has been the biggest recurring problem area with the Financial Adviser Standards and Ethics Authority (FASEA) exam. 

In the last four exams, advisers had difficulties demonstrating knowledge of the components of key advice documentation that was provided to the client.

Joel Ronchi, myIntegrity in Practice principal consultant, said advisers might not be as prepared on the legal aspects of documentation, as they were more used to viewing it from a practitioner’s perspective. 

“Based on my interactions with people who do our [exam preparation] programs, advisers – rightly so – take the FSG and SOA for granted because they do it day in/day out,” Ronchi said. 

“I say to people that do our program to ‘read your FSG, go through it back to front, cross reference it against section 941 and 942 of the Corporations Act, and understand why the information in the FSG is the way it is’. 

“But advisers, because they do it day in/day out go in thinking they know it back-to-front, which they probably do from a practitioner’s perspective, but not from a legal perspective.” 

Ronchi said the challenge advisers had with the exam was it tested the application of the law to a hypothetical scenario. 

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