On Friday morning, the Australian Securities and Investments Commission (ASIC) announced that just 62 per cent of the 231 people that sat the financial adviser exam in August passed.
Among those sitting the exam, 73 per cent were sitting for the first time.
“The exam, conducted by the Australian Council for Educational Research (ACER) since inception, follows a rigorous process to ensure all candidates in each cycle are tested to the same standards,” ASIC said.
This figure is a considerable drop from the 70 per cent that passed both the June and March 2024 versions of the exam.
The August pass mark is the lowest since the November 2022 sitting, when just 57 per cent passed.
ASIC said unsuccessful candidates will receive general feedback from ACER on the areas where they underperformed.
Changes to the exam format earlier this year saw removal of short-answer questions from the exam, leaving only multiple-choice questions. The requirement that only provisional relevant providers and existing advisers could sit the exam was also removed.
The changes followed a brief Treasury consultation on draft legislation at the end of 2023 which ASIC then confirmed it would be implementing in January.
It was hoped that multiple-choice questions would be more efficient by enabling computer marking to replace manual marking which would reduce the cost of administering the exam and improve response times for candidates to receive their results.
To date, 21,430 individual candidates have sat the exam. Over 19,835 (92 per cent) of candidates who have sat the exam have passed, which ASIC said demonstrates “they have the skills to apply their knowledge of advice construction, ethics and legal requirements to the practical scenarios tested in the exam”.
ASIC also announced the indicative dates for exams in 2025: 6 March, 5 June, 7 August, and 6 November.
Thats about the same as CFP exam isnt it? Feels about right. You cannot have a high bar set for professionalism then allow 90% to pass. A true profession will let the bottom quartile go through to the keeper.
Having sat the exam this sitting, the multiple choice makes it materially harder. Several very strange questions where in real life practice, there could be several compliant answers and completely up to interpretation.
Also, a bit of a joke that the exam is 3 x the cost what it was in previous years yet it was MCQ and therefore the correct answers and results would have been known instantly, lowering the cost of administering it. The exam has become a bit of a joke in the industry.
Agree the cost has significantly increased to the point where it makes it a financial burden let alone resitting it and paying the full amount again. I sat in this exam, multiple choice makes it harder. I also found the scenarios are too vague or not enough information which isn’t relatable to real life scenarios.
The exam was designed to cull advisers, and it looks like it is still doing the job. Special thanks to Greg Medcraft and ASIC for meddling in the political process to achieve their ideologically driven goals.
Perhaps those who fail can pick up a job as a Qualified Adviser and sell conflicted super fund products. No exam, qualifications or experience necessary. Nothing could possibly go wrong, “right?”
Multiple choice is actually harder if you don’t understand the topics. Is this the future caliber of financial advice!!
Brilliant! So1,595 advisers may be forced to cease their careers due to an inappropriate and unnecessary exam.
I took the exam this sitting, and it was easy to the point of absurdity, provided you’ve done even the slightest amount of study. I initially agreed with the fact that it is pointless, but upon reflection, anyone who is not able to pass such a basic ethics exam should not be in a position to manage client money, so maybe it is necessary based on that alone.
Right, so they took out the written answer part and now its all multiple choice and less people pass. Interesting
Anyone can spin some bs in a short answer to get half marks. Multiple choice is more black and white. You know, or you dont.
In addition this is now 100% multiple choice yet it still takes a full month to get the results, this should be instant unless these results published are not a accurate reflection of the students efforts
Time to cease this nonsensical “exam” surely?
What’s the best the exam content has almost nothing to do with actual financial advice…
Is this really ” Breaking News ” IFA ????
In the midst everything else going on, I find this sensationalist journalism tedious.
I’m sure there are many more important issues to focus on.
Yeah IFA, like self-interested parties that say research indicates that commissions ARE NOT top of mind for RISK SPECIALISTS.
Stop questioning part time risk writers who can cross-subsidize cost of risk advice with outrageous investment advice fees!