On a new episode of the ifa Show podcast, the executive director of the Association of Independently Owned Financial Professional (AIOFP) said the financial adviser exam should be one of the first priorities for incoming minister Stephen Jones and the Albanese government.
Mr Johnston noted the “cliff” facing thousands of advisers who are yet to pass the financial adviser exam and will be forced to exit if they haven’t passed by 1 September.
“… fixing up the stupid exam which has got to be restructured and to take all the intimidation out of it and the tricky ambiguous questions,” Mr Johnston said.
“And the best thing about all this… particularly from the exam point of view, it is up to the discretion of the minister to do it, which is good, so it doesn’t have to go through parliament.
“[Mr Jones] can amend that.”
On the same episode of the podcast, Mr Johnston challenged the Albanese government to urgently address compliance concerns, saying “minimum 50 per cent” of the reforms introduced over the last few years should be axed and called for the number of the associations in the sector to be cut down.
Listen to the full podcast with Mr Johnston here.
Meanwhile last week, ASIC chair Joe Longo conceded there is “not a lot” the corporate regulator can do regarding concerns with the exam, including the content and its relevance.
“I absolutely acknowledge that there’s views… the exam just isn’t fit for purpose. I acknowledge that concern. But this really is a matter for government to deal with,” Mr Longo said.
“We don’t have any say at all as to the content of the exam or what’s prescribed. We don’t have any power to modify the impact or effect of those exams.”
Meanwhile, the findings from a survey looking at the mental and emotional wellbeing of financial advisers in Australia revealed that 84 per cent of the respondents said FASEA requirements have added significantly to stress levels and was rated as one of the highest causes of stress.
The survey, reported exclusively by ifa, noted that the exam is regarded as “flawed” and difficult for many to pass on their first attempt.
Among those surveyed, 62 per cent agreed that the exam should be examining specific areas of advice and only cover a specialty area, while 78 agreed that specific feedback on each question should be provided if an adviser does not pass.
Why are advisers upset that other advisers want scam changed ? Isn’t this a profession where we all help each other ?
I agree. The advisers who have passed the exam should worry about the issues that effect them. Stephen Jones will be looking at all the issues, not just the exam. For those yet to pass, I hope the exam is restructured and more time is allowed.
Because advisers who can’t/won’t pass a simple exam in law and ethics aren’t part of the profession. They are part of the product sales industry. Professionals help other professionals. They don’t help product sales people who are trying to avoid professionalism.
What a stupid thing to say!
I think you are missing the point. Advisers want a strong profession made up of member who have all had to meet the same requirements to be able to practice. Making exceptions will become a slippery slope.
The AIOFP hasn’t asked their membership what are the important issues. For me it’s red tape, not the exam.
There is no doubt that the current exam is a croc. Not sure that the advisers who have passed need to condemn the advisers who have not. It could well be that the duds have passed the exam. Interesting to note that Jane Hume is now the opposition financial shadow minister. Can you believe that? The libs have lost their way.
Jane Hume opposition financial services shadow minister – 100%, no surprises there one bit – just proves how much our Pollies are in denial and clueless about the Advice Industry. After everything we have had to weather to date, changing Govt. has essentially given her the nod for a job well done – more confirmation that the Advice Industry has to climb Mt Everest before Canberra will even take notice let alone fix anything.
16,000 duds passed the eam while 900 brilliant advisers could not? Surely youre deluded.
This still being mentioned is ridiculous. Advisers have had years to study for it and pass it. That exam is a joke, not because of the potentially ambiguous questions (use common sense) but in fact of how easy it is and costing $600 odd bucks.
Let’s focus on the real issues affecting advisors like the amount of red tape, cost to serve and the amount of time we are all expected to waste on tasks that do not benefit the client.
Outline your red tap? Its used as such as throw away I’m not at a loss of what is the red tap and what is not or is it a case of advisers hate change?
Maybe they would have passed if the exam was standardised and didn’t change over time – the exam hasn’t been fair and lucky for those advisers who completed this earlier on when it was much easier!
Yes. They’ll fix the exam,…. they’ll waive the education requirements..that’s good enough for you guys isn’t it? …and in return Industry Super funds will be able to give advice with zip requirements. Thanks, Peter for creating an unnecessary distraction. Peter, focus on fixing bad legislation and ensuring any adjustments are made fairly. and not giving a certain party and unfair advantage. Peter you told us to vote Labor, we warned you, don’t stuff it up.
Peter is focusing on all the issues – I don’t see any unnecessary distraction. It’s advisers like you that will stuff it up! Let it go!
Seriously give it a break – if you cant pass that exam you need to consider your options in this industry.
Once again, when the majority have passed the exam (as is, in all its ambiguity), how unfair to everyone else to change it now for the minority who id say may have left it too late. Leave it alone. Change the other over the top regs.
Why is it unfair? How unfair to change the exam and make it more difficult when the pass rate was higher. How unfair is that? The exam is not standardised and to me, that’s unfair. If we knew this, I’m sure all advisers would have sat the exam in the beginning.
What a silly issue to focus lobbying time and resources on. There are many far more important issues associations should be raising with the new minister.
The exam may not be perfect, but anyone with the skills needed to be a professional adviser rather than a product salesperson could have easily passed it by now. It reflects very poorly on the credibility of AIOFP if their membership is weighted towards the small minority of advisers who can’t pass the FASEA exam.
Exactly right. Imagine changing the exam on those attempting the exam again after they have an idea what to expect (let alone the disrespect to the vast majority of financial planners who passed it already). Has Peter passed the exam?
Probably doesn’t need to..
‘Fix up the exam’ – Isn’t it a little late for that? Isn’t there only one more sitting left with no additional extension? It’s like locking the kennel door after all the dogs have escaped!