More advisers resitting the mandatory Financial Adviser Standards and Ethics Authority (FASEA) exam the have passed on their second attempt during its most recent sitting, according to new figures released by the Authority.
The figures related to the seventh advisers exam, held from 13 to 18 August, which was undertaken by 1521 advisers of whom 82 per cent of candidates passed.
FASEA noted 65 per cent of advisers who were resitting the exam during this time passed on their second attempt compared to an average of 54 per cent in previous attempts.
“Overall, 89 per cent of advisers who have sat the exam (irrespective of how often it was sat) have passed, representing 46 per cent of advisers on ASIC’s (Australian Securities and Investments Commission) Financial Adviser Register (FAR),” the authority stated.
“Over 11,180 advisers have sat the exam with nine in 10 demonstrating they have the skills to apply their knowledge of advice construction, ethics and legal requirements to the practical scenarios tested in the exam,” FASEA chief executive Stephen Glenfield added.
FASEA noted the overall pass “demonstrates a strong performance by advisers, including those advisers who have passed after resitting.”
“An increase of 11 per cent in the pass rate for advisers undertaking their first re-sit compared to previous exams indicates these advisers are preparing for their subsequent sitting allowing them to raise their knowledge to a level consistent with the challenge set by the exam.”
The authority also identified key areas that advisers, particularly those who did not pass, needed to focus on including a greater need for understanding the difference between personal advice and general advice and how they apply to different client situations and the identification of client biases and how they can influence the financial and investment decisions of clients. These were also areas identified as being problematic in the June exam.
Additional areas of concerns include the application of best interest duty, informed consent and the promotion of ethical standards as outlined in standards 2, 4 and 12, respectively, of FASEA’s Code of Ethics.
More than 700 advisers have registered for the October exam, and a further 1200 for the November exam.
