AFA News 17 June 2021. FASEA appeared at a Senate Estimates hearing on 2 June 2021 and faced a number of questions from WA Liberal Senator Ben Small, QLD ALP Senator Anthony Chisolm and the Chair of the Senate Economics Committee, WA Liberal Senator Slade Brockman.

A range of good questions were put to FASEA, including with respect to the treatment of advisers who are unable to pass the exam by the end of this year, the number of advisers who have scored more than 50%, but less than the credit standard for the exam, CPD requirements for part-time advisers, the funding of FASEA, FASEA’s view on the decline in the number of financial advisers, and the feedback provided to candidates who fail the FASEA exam.

The question of most interest was the one related to what advisers can do if they have not passed the exam by the end of this year.  Stephen Glenfield, the FASEA CEO, advised that one option was for advisers to be suspended on the register and being able to come back as an existing adviser once they have passed the exam.  Seemingly this is possible, due to an ASIC Legislative Instrument that limits the removal of the existing adviser status to those who are still on the register at the end of this year and are yet to pass the exam.  We will say more on this in coming weeks; however, it is not a great solution for the many small business advisers who would need to find someone to service their clients whilst they are taking a career break and working to pass the exam.  In addition, responsibility for the exam is being transferred to ASIC in 2022 and there is no timetable for the exam next year.

Please click here to see a video of the FASEA session at Senate Estimates.

Issued 17.06.2021. AFA Policy & Education Update