The Financial Adviser Standards and Ethics Authority (Fasea) in Australia will allow financial advisers working in the country more time to achieve the revised levels of qualification, assistant minister for financial services Jane Hume has said.
The change was announced at the end of 2018, when Fasea said advisers would have to undertake a three and a half hour (including reading time) examination comprising at least 70 questions with a mix of multiple choice and written responses.
“The extension of the exam will ensure that all advisers, including rural and regional advisers, will have two years to sit the exam, as originally intended,” said senator Hume.
“The extension of the qualification requirements will assist working parents, including those taking parental leave during the transition period, to have sufficient time to meet the requirements, maintaining a diverse adviser industry.
“Ultimately, strengthening the financial adviser sector will benefit all Australians, as they will be able to access better quality advice that is affordable and helps them make good financial decisions.”
How much time?
Originally, financial advisers had until 1 January 2021 to pass the Financial Adviser Exam and until 1 January 2024 to reach the education standard.
The government has now granted those that have registered before 1 January 2019 an additional year to sit the exam and two more years to achieve the qualification requirements.
These changes, however, will not apply to advisers who registered after 1 January 2019.
To reach the professional standards advisers would need to:
- Complete a Fasea-approved exam;
- Hold a bachelor’s degree or equivalent qualifications;
- Undertake continuing professional development;
- Comply with a code of ethics; and
- Be a member of an Australian Securities and Investment Committee (Asic)-approved code monitoring scheme.
Advisers can only sit the exam in capital cities for now, as regional centres will only be available after September 2019.
