The pass rate for practitioners taking the latest financial adviser exam has remained stable, but there has been a notable decrease in both the total number of individuals and new candidates sitting the exam.
Australian Securities and Investments Commission (ASIC) data has revealed 235 candidates took the exam in June, with 165 (70 per cent) passing. This compares to 298 candidates electing to sit the exam in March, with 210 (70 per cent) passing.
The percentage of first-time candidates also saw a decline, with 67 per cent taking the exam for the first time in June, down from 77 per cent in March and 74 per cent in May 2023.
This was the twenty-fifth iteration of the exam and the second since Treasury revised its format, switching from short-answer questions to multiple-choice ones. The change also allowed individuals studying for the profession to take the exam, not just provisional relevant providers and existing advisers.
To date, 21,260 candidates have taken the exam, with over 19,692 (92 per cent) passing. Despite this high pass rate, there are currently just over 15,500 financial advisers in the industry, with around 300 new advisers entering the profession in 2023, according to the Financial Advice Association Australia.
Additionally, ASIC has announced a compliance program to review the accuracy of qualifications listed by Australian financial services licensees on the Financial Advisers Register.
This follows the discovery of inconsistencies, including some licensees incorrectly listing the completion of the financial adviser exam as an approved qualification under the Corporations (Relevant Providers Degrees, Qualifications, and Courses Standard) Determination 2021.
