Completing the financial adviser exam has been identified as the main priority for advisers this year.
BT has revealed that the exam is the most-talked-about task from advisers on its hotline in the last quarter of 2021 on the back of the Better Advice Bill passing in October.
“The implication, based on current law, is that these advisers will have been removed from the Financial Adviser Register as at 1 January 2022, and will no longer be able to provide personal advice to a retail client,” BT’s head of financial literacy and advocacy Bryan Ashenden said.
“It’s important to point out that they can still provide advice to wholesale clients, and help with running successful financial planning practices.
“Furthermore, whilst they cannot be the supervisor of a new entrant undertaking their professional year, they can still act as a mentor – and so advice practices can still benefit from these advisers’ experience and expertise.”
It comes after ASIC confirmed late last month that advisers who have sat the exam at least twice before 1 January 2022 will be eligible for an extension – as recently announced by the government – and have until 1 October 2022 to pass.
However, any financial adviser who does not qualify for the extension must have passed the exam before 1 January 2022 if they wish to continue providing personal advice.
If an adviser not eligible for the extension has not passed the exam by that date, their Australian Financial Services Licence “is required to have revoked their authorisation to provide personal advice to retail clients on relevant financial products on or before 31 December 2021 in order for the adviser to retain their status as an existing provider”.
Any adviser who has lost their status as an existing provider will be treated as a “new” financial adviser and must meet education requirements, including the completion of their professional year.
Meanwhile, the first sitting of 2022 is set to be held from 17 February until 21 February 2022.
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
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