‘A mess from day one’: The fallout from FASEA

On the latest episode of the ifa Show, Philipa Hunt – director of Artemis Investments – slammed FASEA as a “debacle” after it wound up at the end of 2021.

“FASEA was a mess from day one,” Ms Hunt said.

“The fallout from FASEA is the style of the exam itself.

“And also the fact in the original parts of it, there was no recognition of prior learning. So that's now been addressed because when advisers set this industry up 30 years ago, nobody needed a degree. There was no such thing.”

Currently, existing advisers with no degree must have an approved qualification by 1 January 2026.

Earlier this month, it was revealed that just over 30 per cent of candidates passed the February exam and Ms Hunt noted that changes must be made by the government, saying: “We've now got roughly 3,000 advisers who have yet to sit in the exam and pass. We can't afford to lose another 3,000.”

“We actually have to do something about the remainder of the FASEA exam because if these people have done it twice and still can't get through it, some things are missed there somewhere,” Ms Hunt said.

“Also, the fact that they've now recognised experience and the problem that we've got with getting all of this done by 2026, those who are within five years of retiring now will go.”

Ms Hunt, alongside Forte Asset Management founder and director Steve Prendeville, have teamed up for a new survey that seeks to ascertain the current mental and emotional health of financial advisers in Australia.

The survey looks at the mental and emotional health of planners, as well as FASEA, LIF and the effects of both now. It is targeted to all financial advisers, including those in insurance and investment, as well as staff who work with and for advisers.

To complete the survey, click here and listen to the full ifa Show episode with Ms Hunt and Mr Prendeville here.

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.