FASEA finally provides guidance for advisers on the Financial Adviser Examination

Featured Financial Advice

On 11 July 2018, the Financial Adviser Standards and Ethics Authority (FASEA) released Consultation Paper 3: Financial Adviser Examination.

The Consultation Paper provides guidance on the Financial Adviser Examination that all advisers are required to complete.

  • Existing advisers registered on the Financial Adviser Register prior to 31 December 2018, are required to complete the exam by 1 January 2021.
  • New entrants or those returning to the industry who register on the Financial Adviser Register post 1 January 2019, are required to complete the exam after they have completed their tertiary degree and before they commence their Professional Year.

The exam is proposed to have:

  • A focus on the ‘application of knowledge’
  • Questions designed for candidates at AQF 7 level of reasoning
  • Total of 75 questions (70 multiple choice questions and minimum of five written response questions)
  • Closed book examination conditions (Reference material (electronic or hard copy) will not be permitted)
  • Duration of three to four hours
  • Delivered in face to face locations in all capital cities - monthly for existing advisers and quarterly for new entrants
  • Alternative digital delivery arrangements will be an option for individuals in remote areas or unable to travel

The exam will include:

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  • A scaled passing score of 65%. In addition, a pass mark of 75% for ethics and 50% pass mark for all other areas
  • Applicants will get a maximum of two resits of which there will be a defined period between each resit
  • FASEA will publish a recommended reading list
  • FASEA does not intend to provide examination preparation courses
  • Examinations will commence for new entrants from January 2019, and for existing advisers in the first half of 2019 (with full availability from mid-2019)

FASEA welcomes feedback and submissions to assist in finalising the development of the examination. Submissions about the proposed standard should be sent to FASEA by emailing consultation@fasea.gov.au by 5pm 31 July 2018.

Should you have any queries about how Centrepoint will help advisers prepare for the examination, please contact education@cpal.com.au or your local Professional Standards Consultant.