Financial Adviser Exam

Financial Adviser Exam2019-02-14T21:04:27+00:00

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Financial Advisers / Financial Planners must pass the FASEA Exam for Financial Advisers as governed by the Financial Adviser Standards and Ethics Authority (FASEA).

Some key facts about the FASEA Exam.

  • 70 questions – 64 multiple choice questions (MCQ) & 6 short answer questions requiring written responses or report writing.
  • Duration – candidates have 3.5 hours to complete the FASEA exam, which includes 15 minutes reading time.
  • Environment – exam must be completed at an approved examination centre using a computer provided by the exam administrator (special exemptions can be applied for). The computer must give electronic access to statutory materials and materials published by ASIC and other relevant regulators as specified by FASEA.
  • Exam result – FASEA Exams will be marked to a credit level and the candidate will be awarded a “pass” or “fail” on this basis.  There is NO SCORE given.
  • Timetable – FASEA Exams will be scheduled quarterly from mid 2019 and bi-monthly in 2020.  Additional exams may be scheduled based on demand.

What does the FASEA Exam cover?

The exam allows candidates to demonstrate professional reasoning and apply knowledge acquired to financial advice scenarios at AQF 7 level of reasoning.
The FASEA Exam covers three domains of knowledge and skills as follows:

1. Financial Advice Regulatory and Legal Obligations (including Corporations Act – Chapter 7, Anti-Money Laundering (AML), Tax Agents Services Act (TASA)) – the proposed learning outcomes are to:

  • Identify the obligations of relevant providers under Chapter 7 of the Corporations Act 2001
  • Articulate the importance of a Statement of Advice (SOA) and identify the essential requirements required under Chapter 7 of the Corporations Act
  • Articulate the consequences of breaching their financial disclosure obligations under Chapter 7 of the Corporations Act
  • Understand the requirements of the notification obligations for breaches of Chapter 7 of the Corporations Act
  • Compare and contrast legal requirements for individual and licensee
  • Apply legal requirements for AML/CTF legislation when providing advice
  • Apply legal requirements for Privacy legislation when providing advice
  • Articulate the requirements for compliance with the Tax Agents Services Act 2009 requirements as a registered Tax Adviser

2. Applied ethical and professional reasoning and communication – the proposed learning outcomes are to:

  • Explain the requirements specified in the FASEA Code
  • Articulate the importance of a code of ethics and why financial planners/advisers need to work and abide by the approved code in the context of professional standards
  • Apply ethical frameworks to address issues and dilemmas that are encountered as a financial planner/adviser
  • Identify and demonstrate the importance of a relevant provider acting with Integrity and in the best interests of each of their clients
  • Evaluate the need for due diligence and the need to maintain client files and records

3. Financial Advice Construction – suitability of advice aligned to different consumer groups – the proposed learning outcomes are to:

  • Define the environment in which financial product advice is sought and given for new and existing clients
  • Explain the need to prevent and avoid misconduct and inappropriate advice
  • Broadly understand population and community profiles at a retail client level
  • Identify different types of consumer behaviour and decision making
  • Evaluate and apply advice strategies suitable for different retail clients

What happens if I FAIL?

You can apply for a review of the exam results by applying to the exam administrator BUT ONLY for a review of the marking of only the written response style questions.    You can only make only 1 application for review for an exam.

Can I resit the exam?

Yes – if you FAIL the FASEA exam, you are eligible to resit the exam after 3 months have passed.   There are unlimited resits available.

You can find more information directly from FASEA here