FASEA – My result and industry impacts
GOOD NEWS: I passed the FASEA exam!
This means I’m fully compliant and qualified to continue acting as a financial adviser through 2026.
The exam became obligatory for all advisers and brokers in the wake of the Royal Commission into financial services. Designed to ensure that advisers act in an ethical way, and in the best interests of their clients, it is pivotal to the future of our industry.
However, the process has taken an enormous toll on those studying and preparing for it, particularly during the pandemic.
The exam itself is tough, and the news out of yesterday’s results is that only 60% of advisers and brokers who sat the exam, passed.
That means that almost half failed. Some of those for the second time, which means they need to either exit the industry or apply for special dispensation to sit the exam again.
On the one hand, you might argue this is a good thing as it removes people lacking in the requisite competencies from the industry.
But on the other hand, it’s stripping people – often good, experienced, ethical advisers and brokers – of their livelihoods at an already extremely stressful time, and throwing their clients into disarray.
The most unfortunate thing is that the process doesn’t take experience into account, it’s just about passing the test.
This is something I’ll be doing my best to communicate to those making the decisions as I host Money News on the Nine Radio network over the next month. Please let me know if there’s anything you’d like me to raise on behalf of the industry, or business more widely.
In other news, today is the first day of spring and the unofficial last day of reporting season. It also marks 12 months since we made the tough call to resign from Garvan (MLC) as our licensee, to join the Interprac group owned by Sequoia.
We made this call in the best interests of our business, and most importantly, our clients. It was the right call, just like it was before. And just for the record, we received no financial payment, incentive, or special deal to do so.