FASEA exam extension a sensible move by Govt
The Government seems to have listened to the financial adviser industry with its change of heart regarding no extensions or exemptions to passing the Financial Adviser Standards and Ethics Authority (FASEA) exam by the end of 2021.
With the current expectation that there are to be only 15,000 advisers left by the end of the year at a time when affordable advice is more needed than ever, the decision to give a one-time extension is a rational one.
Advisers and industry associations have been left confused ever since FASEA chief executive, Stephen Glenfield, told a Senate committee that advisers would be able to take the exam next year if they had not passed by the end of the year.
Glenfield was sparse on details during his appearance but FASEA later updated its website FAQs to allude to a possible ‘career break’ pathway for existing advisers who had not passed by the end of 2020. However, industry associations warned this technical workaround should only be used by advisers as a last resort.
Therefore, the Government’s decision for the exam extension is a welcome one.
However, the extension can only be used by advisers who have failed at least two exams so any advisers who sit their first exam in September and fail will be unable to use the extension given the three-month rule for registering to re-sit the exam.
Currently, there are only three exam sittings left – July, September, and November.
So, while it is a welcome move by the Government, when the measure was announced it gave advisers who had not sat any exams yet just one day before July registrations closed.
The only detail the Government has given so far is that advisers who use the extension measure will have until 30 September, 2022, to pass the exam.
The announcement by the Minister for Superannuation, Financial Services, and the Digital Economy Jane Hume said: “There will be at least one further opportunity to pass the exam offered in 2022 for those who qualify for the exemption. Costs, and timings for the 2022 period have yet to be confirmed”.
Clarity from the Government and the Australian Securities Investments Commission (ASIC), which will oversee the exam from next year, is still needed on whether advisers will be able to provide advice between 1 January, 2022, and when they pass the exam.
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