FASEA pass rates drop in January

In a statement, FASEA said 73 per cent of candidates sitting the exam for the first time passed the January exam.

This compared with an average of 83 per cent across all exams and 80 per cent for the November sitting.

Pass rates for re-sitters also dropped significantly to 46 per cent, compared with 58 per cent for the November session and 55 per cent for all exams.

This amounted to an average pass rate of 67 per cent, compared with 76 per cent in November.

The standards authority said 1,079 advisers sat the January session, and over 2,300 advisers were now booked for the March exam.

Problem areas

FASEA said the areas for improvement among unsuccessful candidates in the exam had been:

Financial advice regulatory and legal obligations

- Demonstrating an understanding of different types of advice (e.g. personal advice, general advice and factual information) and how they apply to different client scenarios;
- Demonstrating knowledge of the components of key advice documentation that is provided to the client i.e. FSG/SOA; and
- Applying relevant sections of the Corporations Act when identifying responsible provider obligations, including breaches of those obligations.

Applied ethical and professional reasoning and communication

- Demonstrating a practical application of due diligence in financial advice;
- Identifying sources of judgement and biases and their influence on financial advice;
- Applying best interest duty and associated ethical obligations when providing financial advice; and
- Effectively applying the FASEA code to client various scenarios.

Financial advice construction

- Demonstrating an understanding of the context in which financial advice is given and requested and how this impacts decision making.