The pass rate for practitioners sitting the most recent financial adviser exam has improved slightly after the implementation of minor changes to improve its efficiency and delivery.
New figures released by the Australian Securities and Investments Commission (ASIC) show 298 candidates sat the most recent exam in March, of which 210, or 70 per cent, passed. In comparison, 219 candidates sat the November 2023 exam, of which 145, or 66 per cent, passed.
In the March exam, 77 per cent of the total number of candidates were sitting the assessment for the first time, compared to 70 per cent in November.
The twenty-fourth iteration of the test is the first since Treasury released the Corporations (Relevant Providers – Education and Training Standards) Amendment (2023 Measures No 1) Determination 2023 to change the delivery and the structure of the exam.
More specifically, the amendment removed written-answer questions so the exam is based only on 70 multiple choice questions and removed the requirement that only provisional relevant providers and existing advisers could sit it, allowing individuals undertaking study to complete the assessment requirement.
The changes were broadly supported by the financial services industry, with Financial Advice Association Australia suggesting the amendment would lead to a more objective test and support more professionals to enter the industry at a time when there is a significant shortage of advisers.
According to ASIC, 21,102 candidates have now sat the exam, with 19,527 (92 per cent) successfully passing the assessment requirement. The March exam was the first of the 2024 calendar year, with future sittings scheduled for 6 June, 8 August and 7 November.