Computer marking must lower cost of adviser exam

The cost of the financial adviser exam needs to be reduced to reflect the Government’s move to make it multiple choice and therefore capable of computer marking, according to the Stockbrokers and Investments Advisers Association (SIAA).

As well, the SIAA is also recommending changes which would allow candidates to sit the exam at any time and not be restricted by exam blocks, the removal of questions that have two correct answers requiring candidates to select the ‘most correct’ and for questions to cover a broader range of scenarios than simply financial planning.

The SIAA is also urging more tailored feedback to unsuccessful candidates to assist them to work out how they can improve at their next exam sitting.

In a submission filed with Treasury this week, the SIAA welcomed the Government’s proposed changes to the exam arrangements, particularly switching it to multiple choice because this was likely to lower the cost.

“The cost of the Financial Adviser exam is a real issue for those of our members who pay the educational costs of the PY (professional year) candidate,” it said.

“For candidates meeting their own education fees, the cost can be prohibitive, particularly if they don’t pass the first time. Given PY candidates have already incurred significant costs to undertake the mandated education, imposing further significant costs to sit the exam cannot be justified.”

“Once the proposed changes are implemented, the cost to the exam provider should reduce significantly and this should be passed on to the exam candidates in the form of a lower exam fee.”

The SIAA said it also strongly supports removing the current exam eligibility criteria which restricts access to the exam to those who have already met the qualifications standard or who are existing providers.

“This will provide flexibility for candidates to sit the exam at a time suitable to them, for example, while they are completing their studies. It will also open up access to the exam to a larger cohort of people. Firms will be able to encourage back office and middle office staff to sit the exam, thereby increasing the pool of PY candidates,” it said.