For starters – what do we do about the exam? On a recent episode of the ifa Show, Lifespan Financial Planning chief executive Eugene Ardino echoed a sentiment shared by many in the industry in that the test “doesn’t have a lot to do with giving advice”.
As a consequence, he said that it has created “a lot of self-doubt”, particularly in older advisers.
In July, Michael Harrison, chair of dealer group Synchron, revealed during a House of Representatives standing committee that his study in accountancy is not currently recognised as a prior education by FASEA as it was undertaken at the time as a diploma and not a university course. He said, “a lot of the older guys are moving into mortgage broking because they consider it less onerous, less regulated”.
The Financial Services Council (FSC)’s white paper released in October argued that prior study and education should be recognised following the FASEA transition in 2026, which is one answer.
But then, what of the code of ethics? Chief executive of Adelaide advice firm Pride Advice, Brett Schatto, pondered the same question on the ifa Show, specifically referencing standard 12 which states that “individually and in cooperation with peers, you must uphold and promote the ethical standards of the profession and hold each other accountable for the protection of the public interest”.
“… I’m not sure what other code has a standard 12 in it, where effectively we’re supposed to dob each other in,” Mr Schatto said.
“I find it confusing and you either assume that you’re a dumb person or that you actually get it but you don’t get the legislation.”
And we can’t forget the Better Advice Bill. Draft exposure regulations of the bill, to take effect in 2022, note that the exam fee would increase to $948 (currently $540) while an additional $218 fee would apply for the ASIC to “review the marking of one or more answers to the written-style responses (non-multiple-choice questions) in an exam”.
In a parliamentary joint committee in November, ASIC commissioner Danielle Press said the regulator is currently gearing up for its new responsibilities in support of the legislation– which will see responsibilities passed to ASIC – and its plans for exams.
“With respect to the exam, which is also one that’s of great interest to the financial planning community, we are working with [Australian Council for Education Research] ACER to sign a new contract,” Ms Press said.
“As soon as that contract is signed, which is likely to be next week or the week after, we will be putting out to industry firstly when the exams will be.
“We are looking at having probably four exam sittings in 2022 and for those people that qualify for the extension to 30 September to pass the exam, they’ll have three opportunities to do so.”
With the legislation set to commence from 1 January 2022, Ms Press said clarity around how panels will be convened and how matters will be dealt with by the single disciplinary body would be shared with industry “very early next year”.
Perhaps all will be revealed by ASIC in the coming weeks? Or perhaps the industry, regulators and government can work together on the issues at hand? Either way, time is ticking for FASEA and the industry.
