In a statement, the standards authority said 82 per cent of the approximately 1,500 candidates who sat the August exam passed, compared with an average pass rate of 84 per cent across all sessions so far.
FASEA also said 65 per cent of advisers re-sitting the exam during this session had passed, compared to an average of 54 per cent of re-sitters passing previous exams.
The authority said despite the variation in pass rates, the marking approach for the August session “was set at a consistent standard to prior exams” and “was subject to [exam administrator] ACER’s comprehensive marking approach”.
“An increase of 11 per cent in the pass rate for advisers undertaking their first re-sit compared to previous exams indicates these advisers are preparing for their subsequent sitting, allowing them to raise their knowledge to a level consistent with the challenge set by the exam,” FASEA said.
FASEA said 46 per cent of advisers on the ASIC register had now passed the exam.
“FASEA is pleased to present the outcomes of the seventh exam and congratulates successful candidates on completing an important component of their education requirements under the Corporations Act during the current extraordinary circumstances,” the authority’s chief executive Stephen Glenfield said.
“Over 11,180 advisers have sat the exam, with nine 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 authority also released further details of common problem areas for advisers in the exam, including:
Financial advice regulatory and legal requirements
– Demonstrating an understanding of the difference between personal advice, general advice and factual information and how they apply to different client scenarios;
– Assessing whether advice recommendations meet the client’s best interests; and
– Assessing the impact conflicts of interest may have on advice recommendations.
Financial advice construction
– Identification of client biases and how they may influence clients’ financial decisions and/or investment choices;
– Understanding the context of client requests for advice and how this may impact advice construction;
– Applied ethical and professional reasoning and communication;
– Applying Standards 2, 4 and 12 of the Code of Ethics to advice scenarios; and
– Demonstrating an understanding of an adviser’s ethical obligations when advising on complex family structures.
FASEA said around 700 advisers had registered for the October exam session so far and 1,200 had registered for the November session.
I sat the exam and passed. Not sure what i have achieved. To be threatened into handing over mo ey so you can do an exam is not only unethical but is extortion. FASEA is a disgrace and Jane Hume is an incompetent minister who is uncaring delivering a flawed strategy that does nothing for the consumer. In short it is a lying despicable con. Iam currently under mental health care because of this garbage.
what a waste of time
ASIC need to get rid of ‘general advice’ to general information’ that way you can see the separation. Its a no brainer but that’s probably the problem……
Yep General Advice = Product Information amd should NOT in any way be associated with Advice
Farsea still charging for exam re-marks even though they dont tell candidates how much they failed by or if they failed short answer section. its a SCAM!
Most Government departments have an audit requirement. How do we know that the FASEA issued statements and figures are valid interpretations of what’s truly going on. FACEA must be subject to audit and that audit must be a public record. Particulary when it comes to the Pass/Fail figures.
Lucky they extended the time frame, otherwise it is safe to say we’d be facing a mass exiting of approx 40% of all advisers come the end of December.
It really boggles the mind how many advisers haven’t sat and passed yet. It’s not like they are working full time because all I keep hearing is how they get paid for delivering no service. (Sarcasm).
Correction: ‘FARCE-IA’. Important to spell correctly 🙂
Well if everyone passed, the FASEA exam would be considered a waste of time wouldn’t it? FASEA, the Government would lose face. So ultimately this is a culling exercise, where a certain percentage MUST fail and the question is which advisers lives will be ruined. To paraphase Treasury when FASEA was reviewed they said we don’t care if businesses fail as a result of this legislation it’s market forces at play. So this is not FASEA’s fault it ‘s a clear lack of representation. What a waste of FPA memberhsip fees. A failure at the adviser level that we got to this point. I pity those that will be that 10% that fail… just so that Government can say it’s a success.
We’ve got 9 out of 10 advisers passing the ethics exam and less than 1% of complaints are against advisers yet we are doing all the heavy lifting. #stitchup
#stitchup is correct…..FPA + CBA Advice scandal = FASEA At the time the FPA & AFA got compulsory membership, the CBA got a get out of jail card and you got FASEA.
you dont want to be in the 1%
This means that about half the advisers have sat the exam (11,180). I wonder how many are just waiting until the end of next year and will never sit the exam – a survey would be really interesting if people answered it honestly. My guess is between 10-30% won’t sit but with the pass rates increasing this much, it could well be only 10% not sitting the exam at all.
Pretty good news.
Wait until the stockbrokers start sitting it. Then you’ll see the pass rates falling. Most of the ones I speak to havent even looked at it seriously.
And the pass mark continues to be kept secret. I have no trust in this organisation. They are unaccountable, driven by ideology, they fail to consult with practicing advisers and use spin at every opportunity to cover up the truth.