In 2018, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry landed.

This played out through the year, and when finalised in February 2019, left a reconfigured Australian financial landscape in its wake — and the careers of more than 25,000 financial advisers in this country in question.

The commission found that previous FoFA reforms of financial advising were lacking. The quality of advice, handling of conflicts and remuneration models still needed work. Financial advising was to become truly a profession.

So, what happens now?

New rules, wrapped in the package of FASEA — the Financial Adviser Standards and Ethics Authority — have been introduced that demand compliance with a code of ethics and require existing financial advisers to update their qualifications in order to both practise and maintain professional standing.

One of the main determinants in this centres on an important three-subject Exam set down by FASEA — an essential component of the educational qualifications that all financial advisers now must pass in order to provide personal advice to clients.

Existing advisers have until 1 January 2022 to pass the Exam (and 1 January 2026 to meet the Education requirements).

The Exam is a three hour exam plus 15 minutes reading, consisting of 70 questions comprising 64 multiple choice and six short written answers. FASEA will hold the exam sittings approximately every two months over the next two years.

Sittings began in June 2019 and have been held since then approximately every two months.

2020 Sitting 7: will be held 13 to 18 August 2020 (registration between 14 April 2020 – 24 July 2020). Venues: Sydney, Canberra, Melbourne, Adelaide, Perth, Darwin, Brisbane, Sunshine Coast, Central Coast, Geelong, Ballarat, Traralgon, Launceston, Coffs Harbour, Geraldton, Hobart, Port Macquarie, Rockhampton, Toowoomba, Albury/Wodonga, Orange and Mackay

2020 Sitting 8:  8 to 13 October 2020 (registration 6 July 2020 – 18 September 2020). Venues: Sydney, Canberra, Melbourne, Adelaide, Perth, Brisbane, Cairns, Townsville, Gold Coast, Newcastle, Wollongong,
Wagga Wagga, Bendigo, Bunbury, Hobart.

2020 – Sitting 9:  5 to 10 November 2020 (registration 6 July 2020 – 16 October 2020) at Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Darwin, Rockhampton, Sunshine Coast, Toowoomba, Central Coast, Orange, Albury/Wodonga, Geelong

2021 – Sitting 1:  28 January to 2 February 2021 (register 5 October 2020 – 8 January 2021) venues TBC
2021 – Sitting 2: 25 March to 30 March 2021 TBC
2021 – Sitting 3: 20 May to 25 May 2021 TBC
2021 – Sitting 4: 15 July to 20 July 2021 TBC
2021 – Sitting 5: 9 September to 14 September 2021 TBC
2021 – Sitting 6: 4 November to 9 November 2021 TBC

The FASEA exam is held at an approved centre on computers provided, allowing electronic access to statutory legislation and certain other materials published by ASIC and other regulators, as specified by FASEA.

To pass, advisers need to demonstrate a strong working knowledge and ability to apply to situations, in three areas:

1. Regulatory and Legal Obligations

2. Applied ethical and professional reasoning and communication, and

3. Financial advice construction.

Blue Path’s webinar covers the three areas with a focus on 1 and 2. 

“The content covered, workbook and exercises done throughout the day including case studies, were all excellent.” —Blue Path FASEA Exam preparation workshop attendee comment

 

Get prepared

Register now for the Blue Path FASEA Exam preparation webinar.

REGISTER

Register now for the Blue Path FASEA Exam preparation webinar.

What you need to know

The FASEA exam focuses on three main financial and ethical areas, which will be covered in our program.

These areas are Financial Advice Regulatory and Legal Obligations, Applied Ethical and Professional Reasoning and Communication and Financial Advice Construction.

Financial Advice Regulatory and Legal Obligations

  • Identify the obligations of relevant providers under Chapter 7 of the Corporations Act 2001
  • Articulate the importance of a Statement of Advice (SOA) and identify the essential requirements required under Chapter 7 of the Corporations Act
  • Articulate the consequences of breaching their financial disclosure obligations under Chapter 7 of the Corporations Act
  • Understand the requirements of the notification obligations for breaches of Chapter 7 of the Corporations Act
  • Compare and contrast legal requirements for individual and licensee
  • Apply legal requirements for AML/CTF legislation when providing advice
  • Apply legal requirements for Privacy legislation when providing advice
  • Articulate the requirements for compliance with the Tax Agents Services Act 2009 requirements as a registered Tax Adviser

Applied ethical and professional reasoning and communication

  • Explain the requirements specified in the FASEA Code
  • Articulate the importance of a code of ethics and why financial planners/advisers need to work and abide by the approved code in the context of professional standards.
  • Apply ethical frameworks to address issues and dilemmas that are encountered as a financial planner/adviser
  • Identify and demonstrate the importance of a relevant provider acting with Integrity and in the best interests of each of their clients
  • Evaluate the need for due diligence and the need to maintain client files and records

Financial Advice Construction

  • Define the environment in which financial product advice is sought and given for new and existing clients
  • Explain the need to prevent and avoid misconduct and inappropriate advice
  • Broadly understand population and community profiles at a retail client level
  • Identify different types of consumer behaviour and decision making
  • Evaluate and apply advice strategies suitable for different retail clients

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