New Standards Set for Financial Adviser Exam with 67% Pass Rate

The Australian Securities and Investments Commission (ASIC) has recently released the results of the latest Financial Adviser Exam in February with a pass rate of 67%.

This exam sets new standards for financial advisers, ensuring they have the necessary skills to apply their knowledge of advice construction, ethics and legal requirements to practical scenarios.

The results show that 128 out of 192 candidates passed the exam, with 60% of candidates taking it for the first time. As of now, 20,425 individual candidates have sat the exam, with a 93% overall pass rate. Individuals who have passed the exam demonstrate the ability to provide competent and ethical advice to clients and have a comprehensive understanding of regulatory and compliance requirements.

Implications of the New Exam Standards

The new exam standards set by ASIC aim to ensure that financial advisers provide high-quality advice to clients. Over 15,850 current financial advisers on ASIC's Financial Adviser Register (FAR) have passed the exam, representing 99% of current advisers on the FAR. This indicates that most existing financial advisers meet the new standards, as will future advisers seeking to join the FAR.

Over 2,840 ceased advisers on the FAR may be re-authorised in the future if they choose to meet the new exam standards. With the increased emphasis on competency and ethics, advisers who were previously authorised may not have met the new standards and could be subject to review or disciplinary action. This ensures that individuals seeking financial advice receive high-quality, ethical advice from advisers who meet scientific standards.

What the Exam Covers

The Financial Adviser Exam covers a range of curriculum areas, including advice construction, ethics and legal requirements, and practical applications of advice. The exam is designed to test an individual's practical application of their understanding of these areas to real-world scenarios.

Candidates receive general feedback from ACER if they are unsuccessful. This feedback highlights the curriculum areas where the candidate has underperformed, allowing them to focus on those areas in future studies or training. The exam sets new standards for financial advisers that ensure they provide high-quality investment advice.

Conclusion

The Financial Adviser Exam sets new standards for financial advisers to ensure they have the necessary skills to provide clients with high-quality advice. With 67% of candidates passing the exam, the results show that financial advisers are up to the task. These new standards ensure that individuals seeking financial advice receive high-quality, ethical advice from advisers who meet the scientific standards set out by ASIC.

Published:Thursday, 30th Mar 2023
Source: Paige Estritori

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Equity:
The value of an ownership interest in an asset or company, after all debts and liabilities are deducted.