FASEA exam fee hike a result of declining adviser numbers: AFA

On Wednesday, the government released draft exposure regulations of the bill — which will expand the role of ASIC’s existing Financial Services and Credit Panel to operate as the single disciplinary body for financial advisers — which note that the exam fee would increase to $948 (currently $540) while an additional $218 fee would apply for the corporate regulator to “review the marking of one or more answers to the written-style responses (non-multiple-choice questions) in an exam”.

Speaking to ifa, AFA general manager Phil Anderson said that the industry body has been concerned about a potential fee increase.

“We had feared that there would be an increase in the cost of the exam in 2022, as a result of the reduction in the number of advisers who will be sitting it,” Mr Anderson said.

“We are, however, concerned by the scale of this increase from $540 (plus GST) to $948. That is a very significant increase.”

It comes after data released last week found that the number of advisers has dropped below 19,000 to 18,965.

1,668 advisers have left the industry in 2021 alone.

Mr Anderson said that the AFA will continue to encourage advisers to attempt to sit and pass the FASEA exam by the end of the year, with registration still open until November even for those who are unsuccessful in the September exam.

“Passing the exam this year takes away all the uncertainty that will come with relying upon doing the exam next year, and will also save a lot of money compared to what they will pay next year,” he said.

“We trust that advisers will still be able to choose to sit the exam in an exam room next year, rather than everyone being forced to do it remotely.”

Last week, ASIC announced that “existing providers” who are taking a career break by 31 December this year will not be required to pass the FASEA exam by 1 January 2022 to retain their “existing provider” status and, as such, would not be considered new entrants upon their return.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.