FASEA releases November exam results

In a statement, FASEA said 1,016 advisers had sat the exam in November, and 80 per cent of those sitting the exam for the first time had passed, a similar first time pass rate to that recorded in October.

The standards authority said 58 per cent of those sitting for the second time had passed, compared to 60 per cent of re-sitters passing in October.

The overall pass rate was 76 per cent, the same as the October session.

"The exam was subject to ACER’s comprehensive marking approach and was set at a consistent standard to prior exams," FASEA said.

The standards authority said 11,241 advisers had now passed the exam, representing 52 per cent of all advisers on the ASIC register.

"FASEA congratulates successful candidates on completing an important component of their education requirements under the Corporations Act," the authority's chief executive Stephen Glenfield said.

"Over 12,573 advisers have sat the exam, with 9 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."

The standards authority pointed to the following areas for improvement among advisers who had not passed the November sitting:

Financial advice regulatory and legal requirements

- Assessing whether the adviser has appropriately scoped the advice
- Demonstrating an understanding of the different types of advice (eg. personal advice, general advice and factual information) and how they apply to different client scenarios
- Demonstrating knowledge of the components of key advice documentation that is provided to the client i.e. FSG/SOA
- Demonstrating an understanding of the different types of advice and their legal obligations when considering appropriate financial products.
- Demonstrating the ability to identify breaches of best interest duty and subsequent notification obligations.

Applied ethical and professional reasoning and communication

- Demonstrating an understanding of an adviser’s ethical obligations when advice is not in the client’s best interest
- Demonstrating an understanding of an adviser’s ethical obligations when advising on complex family structures

FASEA said over 1,300 advisers had booked for the January exam session, first of six sittings offered next year.