The Financial Adviser Standards and Ethics Authority (FASEA) has released proposed guidance on the financial adviser examination, welcoming industry feedback on any aspects of the proposals.
The exam will be an essential component of the educational qualifications that all advisers will need to pass before they can provide personal advice to retail clients.
Advisers that are registered as authorised representatives prior to 31 December 2018 will be required to pass the exam before 1 January 2021.
From January 2019, new entrants or those returning to the industry are required to pass the exam after they have completed their tertiary degree, and before commencement of their professional year.
FASEA proposes the exam will test the practical application of adviser knowledge in the competency areas of the Corporations Act with an emphasis on financial services and markets, the FASEA code of ethics, behavioural finance, financial advice construction, and applied ethical and professional reasoning and communication.
The guidance also proposed the exam will have a mix of multiple choice and short answer questions.
Advisers will be given up to two opportunities to resit the exam.
FASEA is undertaking a procurement process with specialist service providers around the development and delivery of the exam.
The standards authority will provide an update on this update in the coming months.
It welcomes feedback on the exam guidance with submissions to close on 31 July.
The remaining standards will be released in the coming weeks, it said.