The STATS from the OCTOBER FASEA Exam sitting
These reflect a couple of interesing points:
- 625 advisers sat the exam compared with an average of 1540 across all exams – in helping Advisers prepare for the exam, it has become evident that many have postponed sitting it until 2021
- overall, 89.5% of advisers who have sat the exam (irrespective of how often it was sat) have passed, representing 49% of advisers on ASIC’s Financial Adviser Register (FAR).
This could means two things:
– 10% of Advisers may struggle to pass the exam, ever. This represents about 2000 to 2500 individuals. No small number in the context of Australia’s advice needs.
– in theory, almost 50% of Advisers are yet to sit the exam. Does this mean they are leaving it to the last minute, or does it mean a significant number have no intention of sitting the exam?
- 76% of candidates passed the October exam (compared with an average of 83% across all exams)
– is this a reflection of more specialised Advisers (ie Accountants, Stockbrokers, etc) sitting the October exam?
The FASEA Exam analysis indicates a couple of important facts:
* prepartion is crucial to success
* specialist advisers (accountants, stockbrokers etc) need to ensure they have a broad level of knowledge about financial planning regs & legs
ANALYSIS OF THE OCTOBER FASEA EXAM data highlights areas for improvement
Exam question areas advisers have underperformed in the October exam are set out below.
Financial Advice Regulatory and Legal Requirements
- Assessing whether the adviser has appropriately scoped the advice
- Assessing whether advice recommendations meet the client’s best interests
- Demonstrating knowledge of when key advice documentation is provided to the client i.e. FSG/SOA
- Demonstrating knowledge of the consequences of breaches of financial disclosure obligations for themselves, for clients and for the industry.
Applied Ethical and Professional Reasoning and Communication
- Applying the Code of Ethics to advice scenarios identifying compliance and non-compliance
- Demonstrating an understanding of an adviser’s ethical obligations when advising on complex family structures