ASIC has confirmed that advisers who have sat the exam at least twice before 1 January 2022 will be eligible for an extension – as recently announced by the government – and have until 1 October 2022 to pass.
However, any financial adviser who does not qualify for the extension must have passed the exam before 1 January 2022 if they wish to continue providing personal advice.
If an adviser not eligible for the extension has not passed the exam by that date, their Australian Financial Services Licence “is required to have revoked their authorisation to provide personal advice to retail clients on relevant financial products on or before 31 December 2021 in order for the adviser to retain their status as an existing provider”.
Any adviser who has lost their status as an existing provider will be treated as a “new” financial adviser and must meet education requirements, including the competition of their professional year.
It comes after ASIC announced on Monday (20 December) that the first sitting of 2022 would be held from 17 February until 21 February 2022.
Enrolments for the first sitting will be open from 10 January 2022 and close on 28 January 2022. The regulator is expected to publish further details about the process for enrolments soon.
I know of 3 planners who just didnt want to finish up just yet – 2 older, one just exhausted. So the exercise of failing twice before next year to allow a third attempt was just a process to gain the extra 12 months prior to retirement. I know of one other who was happy to cut 2 cheques and didnt even attend the exam and wont bother attending it in 2022 as he is leaving. There is a massive number that no longer will be practicing after next year irrespective of the proposed dilution to the education standards. Those that think the adviser exodus will suddenly disappear if education reform is lessened have no real idea to the bigger issue – which is lack of new entrants and low desire from practices to employ revenue negative grads; who can blame them? Say what you like about the banking model of advice, but at least they were the breeding ground for the next gen coming through. They had the cashflow scope to recruit and lose on them. Those young recruits eventually filtered into private practices and beyond.
I look forward to hearing the penny drop over the next 12-18 months as the wider commentators realise the education standard discussions and legislation were just a drop in the wider ocean of industry discontent.
An intentional “no show” for an exam should not be considered a failed attempt, but contemptuous behaviour demonstrating a lack of moral and ethical behaviour required to remain in this industry.
Of those who don’t qualify, are they the same cohort supporting Labor’s policy?
I predict very few of those who qualified for the extension to the extension will pass, or even sit, the exam before Oct 2022.
There has been more than enough time for those who are capable and motivated to pass the exam. Most of those who haven’t are just using the extra 9 months to prolong their exit.
!00% right. There has been more than enough time. And the 1 Jan cut-off for this who don’t qualify for the extremely fair extension is also very fair.
Let’s move on as an industry.
has one ever thought that some that have got the extension till next year, might be because, yes they didn’t pass, but may have personal things going on also. this exam seems to be all over the place with the marking system etc,
so lets not judge
The ones continually going on and on that people have had enough time, or they have so everyone else should have it seem to me are completely incapable of considering situations other than that of their own.
Makes you wonder then how they put the interests of their clients above their own 😉