In a statement, UFAA chairman Alex Vagliviello said the exam had been cited by members as the most poorly constructed part of the new educational and ethical standards framework, as it did not confer any qualification on an adviser upon passing.
This meant the study done by advisers to pass the exam was of little value or understanding to consumers, and placed additional burdens on advisers who were already struggling to fit in additional education and training requirements, Mr Vagliviello said.
“The FASEA exam is completely opaque, non-transparent in application and meaningless as an academic industry entry requirement,” he said.
“Insultingly, it doesn’t even count towards an adviser’s annual continual professional development requirement despite the amount of time this exercise entails.
“Yet failure to pass the exam will end an adviser’s business, putting an end to their livelihood regardless of years of practice and experience.”
As a result, Mr Vagliviello said the association was calling for a boycott of the exam and “seeking a practical alternative”.
“Regardless of the narrative put forward by the LNP or Labor, FASEA and the industry is confused and in disarray while over-regulated to the point where it is on the verge of collapse,” Mr Vagliviello said.
“Overcome by reform fatigue, advisers are leaving the industry in record numbers with those remaining under severe strain as their businesses cope with a never-ending deluge of administrative and compliance demands.”
The comments come following a new membership push from the association, which formed late last year in response to disillusionment from sections of the advice industry around the implementation of the LIF reforms.
At time of launch, the association said it had over 3,000 members, however with around a dozen associations already representing the interests of different sections of the financial services industry, existing industry bodies have been skeptical of the degree to which the UFAA can influence change.
“We have spoken a number of times in the past with [the UFAA] – we pointed out that there are too many associations and we are diluting our influence/credibility in Canberra [by adding more],” AIOFP executive director Peter Johnston said.
“We suggested they join with us but unfortunately they want to go it alone – offering ‘free membership’ probably best sums it up.”
This is the sort of regulation the FPA are looking for in calling for the changes to the AFSL heirachy. UFAA just like the FPA are yesterdays associations.
The fragmentation of this industry reflects poorly on it’s members. On one side you’ve got a body accused by journalists of taking cash for no comments during the CBA advice scandal, and really only represents bodies dragged before the Royal Commission, whilst there members fees are paid for them. And on the other side you’ve got every other tribe on the American plains.
We are not children…………..
Before quoting UFAA as an industry body, can you please ask them to show you their membership register.
I don’t think their current membership numbers support the label.
It’s about the same numbers at the People’s Front of Judea.
You think a body like the FPA where the members join because there employer makes it compulsory and pays for their membership with a discount is better than a association where members join as individuals and pay for it out of the own pocket and all pay the same rate?
Is anyone aware that FASEA did not conduct and produce a regulatory impact statement before this nonsense. Had they done so, then they would know of the disaster they are creating. Yet intellectual derelicts in FASEA, itself a conflicted outfit did not. Reason is they had it in for advisers from the outset for the sake of institutions. The FPA and AFA are useless. I’m keeping my money rather than give it to the fools of AFA FPA and as for the AIOFP, what happended to your Chairman is a disgrace Mr Johnston. We know. We can read also.
Agree with the sentiment and the fact the whole FASEA has been a waste of taxpayers dollars for no consumer benefit and will only add huge firepower to ASIC’s already biased arsenal, but boycotting the exam will only be a quicker way of eradicating those planners. FASEA, ASIC and the Gov won’t care, they’ll simply mark you as ineligible to provide advice and continue on unperturbed.
The exam is stupid but this suggestion is even dumber.
It’s this sort of individual and cowboy association that demonstrates what people don’t like about the industry. No legislation or qualification regime is perfect so accept it and get on with life rather than try unprofessionally to defend the indefensible. And what disrespect he and this so called association shows to the advisers who have just got with business and life. No wonder this industry so often looks like a greedy unprofessional rabble – all so unfair to the majority of great advisers.
I agree with Alex’s comments on the exam, but boycotting is a stupid idea. Get it done so we can all collectively move on the the much bigger issue – the FASEA Code of Ethics. That is the problem we should be focusing on. If we don’t get that sorted very quickly, ASIC, AFCA and the new disciplinary body will start looking at the code through legal eyes and we will all be stuffed.
From personal experience, ASIC wants nothing to do with the FASEA Code of Ethics.
Advisers risk losing their clients that they have worked so hard to help over the years and their livelihoods are at stake? Mr Vagliviello – passing the exam means staying on the FAR register and continuing in the profession? What are you talking about mate?
$Billion of lost value as practices are sold en-mass by all those unable to continue as advisers…
The worst aspect of FASEA is their failure to research and recognise years of perfectly compliant experience and disregard previously obtained qualifications because they do not meet their ridiculous non transparent standards. I passed the FASEA exam after an ectremely high level of study and associated stress to simply find out that I passed. I’d love to know how well I actually did! A secretive operation that leaves a lot to be desired!
A boycott is a stupid idea…get it right and you’ll be hero’s to those who don’t want to write the exam / who can’t pass the exam / who couldn’t be arsed to test their ability…get it wrong and you might as well have failed the exam…at least try….it really wasn’t that hard.
Turkey walking into a butcher’s shop on October 25th saying ‘I dare you to do your worst!’
UFAA is endearing in its approach.