A quarter of candidates still failing adviser exam
Financial advisers are still struggling to pass the financial adviser exam, but the numbers who are choosing to make multiple attempts is declining.
Data provided by the Australian Securities and Investments Commission (ASIC) has confirmed that an average of just over a quarter of candidates sitting the adviser exam over the past 12 months are sitting for a second or subsequent time.
The number of advisers sitting the exam for a second time or more peaked in February at 40% but has hovered between 24% and 30% for most of the exam sittings over the past 12 months.
While the ASIC data does not define the types of people who are failing the exam, it appears to validate the complaints of groups such as the Stockbrokers and Investments Advisers Association (SIAA) and life/risk advisers that the exam remains too focused on holistic financial advice delivery.
While groups such as the SIAA welcome the recent passage of the legislation underpinning delivery of the “experienced pathway” passing the financial adviser exam remains compulsory for those looking to continue on the Financial Adviser Register.
However, the SIAA and others have consistently argued that the financial adviser exam grew out of the Financial Adviser Standards and Ethics Authority (FASEA) regime which treated all financial advisers as financial planners.
It said that this was notwithstanding the differences between the financial planning advice model where advice is provided on all aspects of a client’s financial circumstances and stockbrokers and investment advisers who provide scaled advice on a client investments and shares.
Multiple sittings of the adviser exam is not a cheap prospect for advisers with ASIC have set the cost at $1,500.