Just over 40% of advisers pass May exam

Only 42.7 per cent of the 496 advisers that sat the 17th financial advisers exam in May passed, the corporate regulator said in a statement on Monday.

According to ASIC, 72.2 per cent of candidates were resitting the May exam for at least the second time.

The result comes after 32.4 per cent of the candidates passed the February exam.

Unsuccessful candidates are set to receive general feedback from the Australian Council for Educational Research (ACER) to highlight the curriculum areas where they have underperformed.

To date 20,000 candidates have sat the exam, with the pass rate now at 91 per cent. The corporate regulator noted that this demonstrates "they have the skills to apply their knowledge of advice construction, ethics and legal requirements to the practical scenarios tested in the exam".

Of those who have passed:

• Over 15,600 are recorded as current financial advisers on ASIC’s Financial Adviser Register (FAR), representing 93 per cent of current advisers on the FAR.
• Over 2,400 are ceased advisers on the FAR and may be re-authorised in the future. 
• Over 600 were new to the industry.
• Over 3,250 unsuccessful candidates have re-sat the exam, with 68 per cent passing at a re-sit.

The next exam sitting of 2022 will be held from 28 July until 1 August 2022. Enrolments for the July sitting will be open from 20 June 2022 and close on 12 July 2022.

Importantly, ASIC reminded that Sitting 18 is the last opportunity for financial advisers who are operating under the nine-month exam extension to pass the exam. From 1 October 2022, all financial advisers must have passed the exam to continue to provide personal advice.