Advisers that have sat and failed the FASEA adviser exam at least twice at year’s end will have a further 9 months to pass after being granted an extension as part of the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Bill.
First announced in a LinkedIn post by the minister for superannuation, financial services and the digital economy, Jane Hume, the “one time, limited extension” will give eligible advisers at least one further opportunity to pass the exam.
After the government already agreed to extend the exam cut-off date by 12 months last year due to the pandemic, Hume again noted the disruption covid has caused advisers, many who’ve been forced to sit the exam through remote proctoring services.
“Today, acknowledging the effects of a 1 in 100 year pandemic and the disruption it has caused to lives and businesses, the Morrison Government has announced very limited changes to FASEA exam requirements,” Hume posted around midday.
A joint media release from Hume and treasurer Josh Frydenberg approximately two hours later confirmed the nine-month extension window.
“The Bill will also give the Minister the power to extend the cut‑off date for certain existing financial advisers to pass the exam,” the release states. “The Government will use the power to extend the cut‑off date to 30 September 2022 for advisers who have attempted the exam twice prior to 1 January 2022.”
The minister’s office has since confirmed to Professional Planner that the extension will be available to advisers who’ve failed “at least” twice.
The Bill in question will also push forward some of the other important reforms stemming from the Hayne royal commission, including the formation of the industry’s single disciplinary body within ASIC and the transfer of FASEA’s functions over to Treasury.
While the extension will come as welcome relief to some, Hume advisers to try and pass the exam as soon as possible rather than kick the can down the road.
“Please do not delay – these exemptions will be very limited,” she stated. “Sit the exam as soon possible.”
Hume’s LinkedIn post notes that costs and timings for the extra sitting(s) are yet to be confirmed.
5,500 to go
According to FASEA, over 13,500 adviser had passed the exam at early June with four sittings remaining. One of those four exam sittings has been and gone, with the results yet to be released.
“With close to 1900 advisers recently sitting the May 2021 exam and over 1500 already registered for July, coverage will shortly be over 70 per cent,” FASEA stated at the senate economics committee on June 2.
If this prediction is accurate there should be around 14,000 to 14,500 qualified advisers with three exam sittings to go before the end of the year, leaving around 5,500 unqualified.
It’s not as if we (Advisers) have not had enough notice, time or opportunities to upgrade our qualifications and pass the exam. I commenced my qualification upgrade in 2015 (yes, because it was being discussed 6 years ago) and have now met the required education standards and passed the exam well ahead of time as well as continuing to run a full time advice practice. I find the continuous complaining by many that they haven’t had enough time or that they shouldn’t have to upgrade their qualifications because of their experience (by the way I’ve been an adviser for 21 years) very tedious. Just get on with it and do what you need to do or find another vocation.
The “existing adviser” route was recognition of the current state of play. Many advisers have been in the industry for a long time and amassed enormous experience. By and large the exam has been built to confirm this. The only other ‘one in all in’ uplift was the Ethics bridging course. This was required because the Code was new and no-one could claim to be competent in it.
Then there are many iterations down to being required to complete 6 – 8 subjects.
But even the ‘worst case scenario’ education uplift for existing advisers is better than the “new entrant” route. Under that route they don’t become an adviser for some time post base-line AQF 7 minimum attainment.
However, our only chance of breaking free of regulatory shackles is to morph into a profession. This can’t be done without a level of qualification and a Code of Ethics.
Tinkering around the edges of a massive rip, will not resolve the real issues.
If the same blow torch that has been levelled at Advisers, was applied to members of Parliament and the Public servants who work in Government, it would make for interesting reading.
FASEA is the problem today and forcing an Ethics exam on the vast majority of honest and ethical Advisers is an insult to the great work they do.
Then forcing experienced Advisers such as Risk specialists to do irrelevant, time wasting and expensive studies in areas they do not work in, is a National disgrace.
The Life Insurance sector is being decimated for ZERO BENEFIT to Australia and all Australians because of FASEA and the LIF framework, that has thrown up too many shackles, built by Lawyers, who take ZERO responsibility for the chaos they have created.
FASEA, Best Interest Duty and the 7 safe Harbour steps, was created in Legal Land, and there is no joy in visiting that theme park of chaos.
Senator Jane Hume needs to start listening to experts on the ground, which are the Advisers who live and breathe the Industry and who can show the correct path to take, unlike the current path for Life Insurance Advice, which is littered with thousands of empty office spaces and millions of Australians who can no longer afford advice, or Insurance due to the massive premium hikes caused by FASEA and LIF.