FASEA pass rates rise in March

In a statement, FASEA said 69 per cent of candidates passed the March exam, compared to 67 per cent in January.

However the pass rate among those sitting the exam for the first time was still lower than usual, at 79 per cent compared to an 83 per cent average for all exam sittings so far.

A total of 2,234 advisers sat the March session, and 13,500 had passed the exam at the end of March, representing 65 per cent of all advisers on the ASIC register – just shy of FASEA chief executive Stephen Glenfield’s prediction earlier this year that 70 per cent of the register would have passed after the March sitting.

Overall, 89 per cent of advisers who have sat the exam have passed so far.

“FASEA congratulates successful candidates on completing an important component of their education requirements under the Corporations Act,” the authority’s Mr Glenfield said.

“Over 15,200 advisers have sat the exam with nine in 10 demonstrating they have the skills to apply their knowledge of advice construction, ethics and legal requirements to the practical scenarios tested in the exam.”

FASEA said candidates who were unsuccessful in the March exam would receive additional individual feedback to highlight the curriculum areas where they had underperformed, and would also be invited to a FASEA-led webinar to help them understand their results and provide guidance on how to prepare for their next sitting.

The authority said 2,100 advisers had booked for the May exam sittings and 600 advisers for the July exam. There were four sittings left until the exam compliance deadline.

Problem areas

FASEA said a number of key areas of underperformance had been identified among those advisers who failed the exam:

Financial advice regulatory and legal obligations

- Demonstrating knowledge of the components of key advice documentation that is provided to the client.
- Applying relevant sections of the Corporations Act when identifying responsible provider obligations, including breaches of those obligations.
- Demonstrating an understanding of the Tax Agents Services Act 2009 requirements to scenarios and identifying compliance and non-compliance.

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.
- Effectively applying the FASEA code to various client scenarios.

Financial advice construction

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