Home / Legislation / FASEA exam extended nine months*, waiting period waived

FASEA exam extended nine months*, waiting period waived


The Federal Government’s sympathy for the under-pressure financial advice industry was exhibited once again this week, with Jane Hume, the Minister for Financial Services, delivering an unexpected extension of impending FASEA deadlines.

  • Before the announcement, all registered financial advisers were being forced to sit a comprehensive ethics and general practice exam before 1 January 2022 or lose their ability to directly advise clients.

    While a number of loopholes had been raised, such as the ability to remain within an advice practice but not provide advice and attempt the exam again in 2022, the changes are expected to see a near-halving of the 24,000 strong workforce by 2023.

    Unfortunately, this comes at the same time that the need for financial advice has never been greater. Baby Boomers are retiring in droves, low interest rates are forcing retirees out of term deposits and most worryingly, investment scams are booming amid the stay-at-home orders.

    In a series of recent announcements, the Federal Government has now extended the deadline for passing the FASEA exam to 30 September 2022 but with a significant caveat. The extension will only apply to those who have already failed the exam twice. According to research by the regulator, just 24% of the 1,727 advisers who failed the latest exam had done so twice.

    The passing of this exam for the remainder of the industry, which is no mean feat according to the falling pass rate of 69% in the most recent round of exams, has no doubt been complicated by the growing NSW outbreak and mass shutdowns. Yet, in another positive move, the regulator has also removed the three months ‘waiting period’ that was previously required and had the impact of reducing the bi-monthly exam options to quarterly only.

    For those still waiting to sit the exam, the latest correspondence from the authority highlighted that the biggest issue it is seeing is the reliance of advisers on “licensee policy” rather than on the direct application of the Corporations Act.  

    The Inside Adviser

    Print Article

    Government faces split opinions on wholesale investor test reforms

    It’s an aspect of financial services regulation that was flawed from the outset and has become all but useless over time. The divergence in opinions on how to fix it could give some hint as to why it’s taken so long to address.

    Tahn Sharpe | 27th May 2024 | More
    The 6 ways policymakers can fix advice in the 2024/25 budget: FAAA

    The collation of issues is an important marker for how many areas of advice legislation still need improvement for the industry to thrive, with fairness at the heart of all the proposals put forward by the association.

    Tahn Sharpe | 5th Feb 2024 | More
    Super tax break costs misrepresented: Mercer

    The idea that superannuation tax concessions are costing the government more than the Age Pension is based on bad analysis, according to Mercer, which found that concessions will actually save taxpayers in the long run.

    Lisa Uhlman | 31st Aug 2023 | More
  • Popular posts: