AFA News 8 September 2022. On Thursday 1 September 2022, ASIC released the results from the July/August 2022 Financial Adviser exam. The July/August exam was the last opportunity for existing advisers to pass and was also the biggest exam so far this year with 628 candidates sitting. It also generated the highest pass rate, with over 52% of candidates passing. We would like to congratulate the 328 people who passed the exam this time around, particularly the existing advisers within this number.
From the ASIC announcements this year, it is possible to pull together the following table, however, what is left uncertain is the number of existing advisers who have passed. Another piece of important information is the statement that since the exam commenced, over 700 people have passed the exam, who are new entrants. After the last FASEA exam in November 2021, this number was over 430 new entrants. Thus, we can conclude that at least 270 new entrants have passed this year, meaning that of the 648 who have passed, approximately 380 are existing advisers. This also suggests that of the 882, existing advisers who were eligible for the exam extension, probably around 500, have ultimately not passed and will be forced to leave the financial advice profession by the end of this month.
| 2022 Exam Results | February | May | July/Aug | Total |
| Sat the Exam | 333 | 496 | 628 | 1,457 |
| Passed | 108 | 212 | 328 | 648 |
| Pass Rate | 32.4% | 42.7% | 52.2% | 44.5% |
| Existing Advisers – % | 73% | 72.2% | 76% | 74% |
This was the 18th round of the exam which started back in the middle of 2019. ASIC has confirmed that in total 20,148 candidates have sat the exam with 92% of them ultimately passing.
The exam has been a particularly challenging experience for just about everyone who has sat it. Many got through on the first attempt, some with a great sense of relief and a lack of confidence as to the actual result. It has been a very difficult experience for many, some of whom have sat it multiple times.
We are now at the end of this journey for existing advisers, with the possible exception of those who are not on the Financial Adviser Register as of the end of this month and have the option to once again sit the exam and return to the register should they pass in the future. In the meantime, they cannot practice. For more on this, please read the ASIC issues article for advisers who did not pass the exam article. The next opportunity to sit the exam is 3 November 2022, which will be an entirely remote proctored exam.
It is important that we be completely honest on this point. We do not see any prospect of a further extension for existing advisers to stay practising and sit the exam. The current Financial Adviser Education Standards Consultation Paper makes it very clear that the exam is not the subject of consultation and will not be changing for existing advisers.
We wish all those, for who this is the end of the road, the best of luck for the future.
For any questions on the exam results, please email policy@afa.asn.au.
Issued 08.09.2022. AFA Policy & Education Update
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