The government has introduced draft legislation to modify the financial adviser exam by adding more multiple choice questions and opening up who can sit the exam.

The draft legislation includes amendments that will:

  • Remove the short answer questions from the exam and increase the number of multiple-choice questions; and
  • Remove the requirement that only provisional relevant providers and existing advisers can sit the exam.

“Exams based on multiple choice questions create efficiencies by enabling computer marking to replace manual marking,” the exploratory memorandum for the draft legislation said.

“This reduces the cost of administering exams and improves response times for exam candidates to receive their results.”

The memorandum said the current exam eligibility criteria which restricts access to the exam based on the person having already met the qualifications standard is causing unnecessary delays for new entrants seeking to enter the profession.

“Removing this restriction provides flexibility for candidates to sit the exam at an appropriate time,” the memorandum said.

“For example, potential new entrants could sit the exam while they are completing their studies. This also improves timely access to the exam by reducing bottlenecks and potential delays associated with conducting eligibility assessments for each exam candidate prior to each exam.”

Consultation closes on 10 January 2024.