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:
- 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.