Though declining financial adviser numbers in Australia remain a serious concern, latest data shows that the industry has reason to be optimistic.
Wealth Data revealed this week that for the financial year to date, the sector has gained 130 advisers; at the same point last year, the growth was exactly zero.
In the last two weeks alone, 39 new provisional advisers have been added to the ASIC FAR.
The total number of advisers in Australia as of 15 September is 16,356.
However, Wealth Data noted that losses to adviser numbers are expected in the coming weeks as advisers who failed the latest exam will be withdrawn from the FAR.
Earlier this month, it was revealed that just over 50 per cent of candidates passed the July and August exam which were the last opportunity for advisers who are operating under the nine-month exam extension to pass the exam.
From 1 October 2022, all financial advisers must have passed the exam to continue to provide personal advice.
It was noted that exactly 300 advisers failed the latest exams.
“Bearing in mind that those sitting the most recent exams are by definition experienced advisers, the pass rate reflects the concerns we have been expressing for some time that for stockbrokers and investment advisers, the exam is not testing the right things in the right way,” Stockbrokers and Investment Advisers Association (SIAA) CEO Judith Fox told ifa following the release of the results.
Ms Fox also referenced financial services minister Stephen Jones’ recent consultation paper which he said will address the 30 September deadline for existing advisers to pass the exam and continue to provide financial advice, saying that following the deadline, he will ask Treasury to explore how the exam can be improved, such as reducing the number of questions.
Following the result of the latest exam, ASIC confirmed anyone eligible for the extension who has not passed in any of the three cycles this year will not be able to provide personal advice from 1 October, which Ms Fox said “highlights the inflexibility of the existing framework”.
“That inflexibility is why the current consultation on the education standards is so important for the future of the profession,” she said.
Wealth Data also reported that Insignia lost a net eight advisers — three each from RI Advice and Consultum, and one each from Godfrey Pembroke and M3.
Its been very flexible…we have had many years to do it…and even got an extension…so people who have left it to the last moment and failed it numerous times are now saying change the rules….
You should perhaps consider a submission to the QAR – looks to me that there will likely be zero problem with people (employed by the trustee) having no knowledge of FASEA, not enrolling in FASEA let alone passing FASEA exam delivering personal financial advice to members so what is the problem with those not passing? Perhaps you have passed, but I suspect the number of clients you can help in a year will be very limited to the point of irrelevant for everyday Australians?
This is a false positive as we’re about to lose the 500 who did not pass the FASEA exam. Then let’s see what happens when this idiot government decides how much more financial advisers need to contribute to the Compensation Scheme of Last RORT.