The number of current advisers is expected to fall to 17,227 at the onset of 2022, as 1,345 additional advisers are forecast to drop off the ASIC Financial Adviser Register (FAR) on top of the 2,065 that exited the industry earlier this year, new figures from Wealth Data revealed.
According to the calculations, the number of advisers will continue to decline in 2022 to between 15,000 and 16,000.
But Wealth Data alerted to challenges when predicting the number of advisers that would remain on the FAR from 2022, noting that while as many as 1,444 advisers have failed the exam twice or more in 2021, they have the right to keep practising until they pass the exam through to 30 September.
Last week, FASEA released exam results from the 15th Financial Advisers Exam held in November 2021, revealing that only 52 per cent of all candidates had passed the exam.
Just 63 per cent of candidates sitting the exam for the first time passed the November exam, compared with an average of 75 per cent across all exams.
According to FASEA, the areas candidates had the most trouble with in November include applying chapter 7 of the Corporations Act to components of SOA/FSG; identifying consequences of not acting in best interests of clients; demonstrating knowledge and understanding of the Code of Ethics; and identifying misconduct and inappropriate advice.
Best of luck to those still in the industry for the years ahead. I left this past 12 months, having been told my masters of finance, advanced diploma, business bachelors degree etc meant nothing and that I had to do more education.
Between that, the cost of advice, the size of SoA’s, ASIC treating advisers as guilty until proven innocent, I found I wasn’t enjoying getting up in the morning.
I’m in my late 30’s, it was easy to transfer my skills to another area, and my sympathy goes out to older advisers that might not have such an easy transition.
I promise it’s better out than in, as much as it upset me that I couldn’t do what I always wanted to in helping people get control over their finances.
Having passed the exam on my first sitting in November and yet with friends who have not passed, I have identified the difference.
I did not devote a lot of time to study and did not commit to memory the principles etc., also have not really read any of the acts in depth. However, what I did do was use my English Literature skills to dissect the exam questions, as they were often written in a way to deliberately trick and mislead.
I also have a fairly legal mind, so look for interpretations of language.
The difference between passing and failing does not appear to be based on financial knowledge, but English analyse and Legal skills. Kind of bizarre considering it’s meant to be an exam on financial topics!!!
The committee who sets these exams needs to seriously reflect, as many absolutely fantastic advisors who know the topic inside out are being forced out of the industry.
That’s not such a bad thing.
two things from that? There were advisers sitting that thing for the 1st time? Surely they were pathway candidates? If only 63% passed, that remaining 37% are gone to the wind now…they are practically done.