Stephen Jones urged to restructure adviser exam

On a new episode of the ifa Show podcast, the executive director of the Association of Independently Owned Financial Professional (AIOFP) said the financial adviser exam should be one of the first priorities for incoming minister Stephen Jones and the Albanese government.

Mr Johnston noted the “cliff” facing thousands of advisers who are yet to pass the financial adviser exam and will be forced to exit if they haven’t passed by 1 September.

“… fixing up the stupid exam which has got to be restructured and to take all the intimidation out of it and the tricky ambiguous questions,” Mr Johnston said.

“And the best thing about all this…  particularly from the exam point of view, it is up to the discretion of the minister to do it, which is good, so it doesn't have to go through parliament.

“[Mr Jones] can amend that.”

On the same episode of the podcast, Mr Johnston challenged the Albanese government to urgently address compliance concerns, saying “minimum 50 per cent” of the reforms introduced over the last few years should be axed and called for the number of the associations in the sector to be cut down.

Listen to the full podcast with Mr Johnston here.

Meanwhile last week, ASIC chair Joe Longo conceded there is “not a lot” the corporate regulator can do regarding concerns with the exam, including the content and its relevance.

“I absolutely acknowledge that there’s views… the exam just isn’t fit for purpose. I acknowledge that concern. But this really is a matter for government to deal with,” Mr Longo said.

“We don’t have any say at all as to the content of the exam or what’s prescribed. We don’t have any power to modify the impact or effect of those exams.”

Meanwhile, the findings from a survey looking at the mental and emotional wellbeing of financial advisers in Australia revealed that 84 per cent of the respondents said FASEA requirements have added significantly to stress levels and was rated as one of the highest causes of stress.

The survey, reported exclusively by ifa, noted that the exam is regarded as “flawed” and difficult for many to pass on their first attempt.

Among those surveyed, 62 per cent agreed that the exam should be examining specific areas of advice and only cover a specialty area, while 78 agreed that specific feedback on each question should be provided if an adviser does not pass.

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.