FASEA extension bill passes Parliament

Under the new legislation, existing advisers have been given an additional year to complete the FASEA exam by 1 January 2022, and an additional two years to meet FASEA's qualification requirements by 1 January 2026.

These changes will not apply to new advisers registered after 1 January 2019.

The extension of the exam ensures that all advisers, including rural and regional advisers, have two years to sit the exam.

Assistant Minister Jane Hume explained that this is particularly beneficial to working parents, including those taking parental leave during the transition period, by ensuring they have sufficient time to meet the education requirements, maintaining a diverse adviser industry. 

“I welcome the passage of this important bill. This will provide welcome relief to financial advisers by delivering certainty of the exam timetable. The government recognises how valuable access to quality professional financial advice is, particularly at the moment during the COVID-19 crisis,” said Ms Hume. 

“We want as many Australians as possible to access quality professional advice when they need it the most.”

The new standards, set by FASEA, include compulsory education requirements for both new and existing financial advisers, supervision requirements for new advisers, a code of ethics, ongoing professional development, and an exam that represents a common benchmark across the industry.

The first exam sittings were held in June 2019 in nine locations around Australia. Since then there have been three further sittings throughout metropolitan and regional Australia. So far, 7,488 candidates have sat the exam representing 32 per cent of advisers on ASIC’s Financial Advisers Registry.