WELCOME Cameron Burne, General Manager, Partnerships
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WELCOME
Cameron Burne,
General Manager, Partnerships
TAFE NSW
TAFE NSW
AFA
WEBINAR SESSION
FASEA EXAM Webinar
Presented by:
Diana Bugarcic & Nancy Mikhail from TAFE NSW
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FASEA
EXAM PREPARATION
FASEA EXAM KEY INFORMATION – 17 MARCH FASEA MEDIA RELEASE*
• Over 12,000 advisers have passed the adviser exams held to date representing 57% of advisers on ASIC’s
Financial Adviser Register (FAR).
• Overall, 89% of advisers who have sat the exam (irrespective of how often it was sat) have passed.
• 73% of candidates sitting the exam for the first time passed the January exam (compared with an average of
83.6% across all exams)
• 46% of advisers re-sitting the exam passed on their second attempt compared to 55% re-sitters across all
exams
• 67% of candidates passed the January exam (compared with an average of 78% across all exams)
• 1079 advisers sat the exam compared with an average of 1323 across all exams
• The exam is marked to a credit standard and the pass rate varies with each exam
“OVER 13,440 ADVISERS HAVE SAT THE EXAM WITH 9 IN 10 DEMONSTRATING THEY HAVE THE SKILLS TO APPLY THEIR
KNOWLEDGE OF ADVICE CONSTRUCTION, ETHICS AND LEGAL REQUIREMENTS TO THE PRACTICAL SCENARIOS TESTED IN
THE EXAM”.
TAFE NSW * * HTTP S://WWW. FASEA. G OV. AU/FASEA -RELEA S ES -J A N UA RY -EX A M -RES U LTS /
FASEA EXAM KEY INFORMATION
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▪ Exam cost is $540 + GST for each sitting
▪ If unsuccessful on the first attempt, will be ‘locked out’ and ‘miss’ an exam cycle before being permitted to
resit and pay fees again. You can sit the exam as many as required, however must wait three months
before you can register for the next sitting.
TIP – ENROL and SIT the exam ASAP - only 5 exam sittings left
TAFE NSW
7 FASEA EXAM KEY INFORMATION
Key Dates – 2021 available as well
Sitting Sitting Date Booking Period Locations
2021 - 20 May to 25 8 February 2021 - 30 Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Gold
Sitting 12 May 2021 April 2021 Coast, Rockhampton, Hobart, Port Macquarie, Newcastle,
Wollongong, Bathurst/Orange, Wagga Wagga, Tamworth, Bunbury
and Remote Proctoring
2021 - 15 July to 20 July 5 April 2021- 25 Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Darwin,
Sitting 13 2021 June 2021 Gosford, Sunshine Coast, Townsville, Mackay, Albury/Wodonga,
Geelong, Ballarat, Traralgon , Launceston and Remote Proctoring
2021 - 9 September to 14 31 May 2021 - 20 Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Hobart,
Sitting 14 September 2021 August 2021 Gold Coast, Cairns, Newcastle, Coffs Harbour, Port Macquarie,
Wollongong, Bendigo and Remote Proctoring
2021 - 4 November to 9 26 July 2021 - 15 Sydney, Canberra, Melbourne, Brisbane, Adelaide, Perth, Darwin,
Sitting 15 November 2021 October 2021 Sunshine Coast, Rockhampton, Toowoomba, Gosford,
Bathurst/Orange, Geelong, Launceston and Remote Proctoring
TAFE NSW
8 WHAT YOU NEED ON THE DAY OF THE FASEA EXAM
• Candidates will be required to bring to the ACER examination centre:
▪ their booking receipt (must be hard copy)
▪ two pieces of identification (including photo ID)
▪ be early to ensure you have enough time to complete registration procedures
▪ You will be given:
▪ scratch paper with your login details
▪ a pen
▪ Candidates will be able permitted to electronically access of statutory materials and materials published by ASIC
▪ Not permitted are:
▪ mobile phones
▪ Other equipment
▪ Internet access is limited
▪ See - FPS006 Examination Policy https://www.fasea.gov.au/wp-content/uploads/2020/07/FPS006-Examination-Policy-
vFINAL-July-2020.pdf
▪ Financial Adviser Exam candidate information video
https://vimeo.com/395824289
TAFE NSW
9 FASEA EXAM*
• The exam is a required component of the education standard that all advisers are required to pass to provide
personal financial advice to retail clients in respect of retail financial products.
• Existing Advisers will be required to pass the exam before 1 January 2022.
• 33 learning outcomes that the exam may cover.
• The exam will test the practical application of advisers’ knowledge in the following competency areas:
- Financial Advice Regulatory and Legal requirements (including Corporations Act chapter 7, AML,
Privacy and Tax Agents Services Act (TASA) 2009
1. The Corporations Act (2001), primarily focused on Chapter 7
2. Anti-Money Laundering (AML) Act (2006)
3. Privacy Act (1988)
4. Tax Agents Services Act 2009 (TASA)
- Financial Advice Construction – suitability of advice aligned to different consumer groups,
incorporating consumer behaviour and decision making
- Applied ethical and professional reasoning and communication – incorporating FASEA Code of Ethics
and Code Monitoring Bodies
TAFE NSW
* HTTPS://WWW.FASEA.GOV.AU/EXAMINATION/
The exam will test the practical application of advisers’ knowledge in the following competency areas:
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Australian Financial Statement of Code of Ethics &
Acts Advice Standards
Financial Advice Financial Advice Applied ethical and
Regulatory and Legal Construction – professional reasoning
requirements (including suitability of advice and communication –
Corporations Act chapter aligned to different incorporating FASEA
7, AML, Privacy and Tax consumer groups, Code of Ethics and Code
Agents Services Act incorporating consumer Monitoring Bodies
(TASA) 2009 behaviour and decision
making
TAFE NSWPROPORTION OF QUESTIONS TESTING EACH DOMAIN OF THE CURRICULUM
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ETHICS
Applied ethical and
ASIC & Corps Law professional reasoning
FASEA and communication
Australian Securities & Financial Advice
Investments Commission Standards Authority Construction 24%
Corporations Act
(emphasis on Chapter 7 - The FASEA Code of Ethics 13%
Financial services and
markets)
Behavioural Finance
Client and consumer
33% behaviour,
18% engagement and
decision making
TAFE NSW
12%12
FASEA EXAM*
• The duration of the exam has been set at 3.5 hours including reading time of at least 15 minutes. The exam will
consist of multiple choice and written response questions and will be open book for statutory materials.
• At least 70 questions in the exam
• Split between a minimum 64 selected response styles
* Multiple choice a to d (1 mark each)
* True or False questions (1 mark for all parts of whole question)
• minimum 6 written response style (Case study style)
* Providing one to two short paragraphs response (2 or 1 mark questions)
• Questions are equally split across the 3 knowledge areas.
TAFE NSW13
CONTINUED FASEA EXAM*
• Marks are awarded for correct answers, you don’t lose marks for incorrect answers
• Attempt all questions
• Exams will be marked to a credit level. It is either a pass or fail grade
▪ “ The ‘Pass Mark’ for each exam is set by an expert review panel using formalised and internationally accepted standard setting
procedures. The starting point for standard setting is aligned to the range of a typical university credit grade, i.e. 65%-74%. To ensure
equity and fairness for all candidates, the ‘Pass Mark’ will be reviewed for each exam cycle and may be adjusted to account for differences
in exam difficulty and to maintain standards”.
TAFE NSW14 FASEA EXAM*
At a MINIMUM review the following:
• FASEA has published a curriculum framework, recommended reading lists and practice questions.
• FG0003FASEA Exam Preparation Guidance - https://www.fasea.gov.au/wp-content/uploads/2021/02/FG003-Exam-
Preparation-Guidance-Feb-2021-vfinal.pdf
• Curriculum
• Reading List
• Exam Preparation
• FG0004 FASEA Exam Preparation Guidance - Exam Practice Questions - https://www.fasea.gov.au/prepare/
• Exam Candidate Video - https://vimeo.com/350669232/19920912da?utm_source=email&utm_medium=vimeo-
cliptranscode-201504&utm_campaign=28749
TAFE NSW15
EXAM PRE - PREPARATION
1. Begin studying and preparing early
• Read the suggested FASEA reading material (or as much as you have time)
• Summarise and make notes
• Use a study planner/diary
• Have regular breaks whilst studying (i.e. every 1 hour)
2. Study to suit your learning style
• Visual learner – use diagrams and pictures to help you remember
• Auditory learners may benefit from listening to recordings/make your own
• Form a study group and practice with others
3. Exam details
• Exam includes selected response (multiple choice - select the correct answer from a selection of 4 (a, b, c, d))
• True/False - will ask you to determine whether the statement is true or false.
• Short answer questions - Short answer questions will require you to respond by providing a one-to-two short
paragraph response to the question.
TAFE NSW16
FASEA EXAM – JANUARY WEAKNESS AREAS*
As Reported by FASEA on 17 March – “Further analysis of the January exam data has highlighted areas for
improvement, particularly amongst unsuccessful candidates. Exam question areas advisers have
underperformed on the January exam are set out below (categorised by curriculum areas)”
Financial Advice Regulatory and Legal Obligations
• Demonstrating an understanding of different types of advice (eg. personal advice, general advice and
factual information) and how they apply to different client scenarios
• Demonstrating knowledge of the components of key advice documentation that is provided to the client i.e.
FSG/SOA
• Applying relevant sections of the Corporations Act when identifying responsible provider obligations,
including breaches of those obligations
TAFE NSW17
FASEA EXAM – JANUARY WEAKNESS AREAS
Applied Ethical and Professional Reasoning and Communication
• Demonstrating a practical application of due diligence in financial advice
• Identifying sources of judgement and biases and their influence on financial advice
• Applying best interest duty and associated ethical obligations when providing financial advice
• Effectively applying the FASEA code to client various scenarios
Financial Advice Construction
Demonstrating an understanding of the context in which financial advice is given and requested and how this
impacts decision making.
TAFE NSW *HTTPS://WWW.FASEA.GOV.AU/FASEA -RELEASES-JANUARY-EXAM-RESULTS/18
EXAM PRE – PREPARATION - KNOW
TAFE NSW19
EXAM TIPS
1. Be Prepared & Plan – practice, read, prepare
2. Nervous/anxious – that’s normal
3. READ the Question carefully
• What’s the question asking – an example, recommendation, advice?
• Put yourself in the shoes of the Adviser
• Consider what you would do if you were in this situation to comply with legislation and the FASEA Code of Ethics
• Question may ask TWO concerns, issues or actions
• Relate your answer to the scenario
• Copying from the resource material, and restating the question will not earn marks – give an example if necessary
4. Navigation Bar in the Exam
• If you did not answer a question it will not be shaded in the navigation bar at the top of the page
TAFE NSW20
EXAM TIPS
5. Don’t over answer – address the question/issue and don’t ‘read’ more into it – be concise, clear and accurate. Avoid the
temptation to overwrite and ‘mind dump’.
6. Time management
• Answer all the ‘easy’ questions first
• Answer all the questions – even those you are not sure about
• Make a note of the questions that not sure about to go back to if time permits
• Each question has the mark displayed on the screen
7. Stressed – Mind blank?
BREATHE (in through the nose for 4 sec, hold for 4, breathe out through mouth for 8 seconds and repeat)
8. Noisy? – Use the ear plugs available
TAFE NSW21
PROCTORU
Remote Proctoring involves sitting the FASEA exam under live supervision using your own computer in a suitable
location with internet connectivity. An invigilator (proctor) will supervise you via webcam while you sit the
exam.
1. Extremely important to read the Remote Procturing Information guide issued by FASEA
• https://faexamreg.acer.org/themes/fasea/doc/RP/Remote%20Proctoring%20Step%20by%20Step%20Guide.
pdf
• Watch the video and complete the procturing checklist (ie set up an account)
2. On the day of the exam allow a minimum of 30 minutes PRIOR to exam starting to complete pre-exam
checklists (allow approximately 4-5 hours for the entire process.
TAFE NSW22
EXAM SUCCESS STRATEGY
Road Map to answering a question
Phase 1 Phase 2 Phase 3
• If you are able to answer
without looking at any resources • Identify the appropriate
then go for it! Time is a very legislation, sections from the
critical factor in this exam. There resources tab and match with
• Read the question carefully
are too many questions to the relevant case study or any
• If it is too long, then look at the answer within a very limited other questions
key points both in question and time – 2 min max per question
• Use your own intuition or
case study
• If you have doubt then look at judgement applicable in that
the given resources link and scenario if you do not find any
search the key items from the answer from the resources
search option
TAFE NSW23 CLIENT SCENARIO & QUESTION
FOR MORE DETAILS
Exam Practice Question
Booklet
https://www.fasea.gov.au/wp-
content/uploads/2020/11/FG004
-Practice-Questions-Guidance-
v8.0.pdf
Watch the video
https://vimeo.com/395824289
TAFE NSW24
EXAM SUCCESS STRATEGY - TIP
Use the “Resource Tab” as an excellent support option
TAFE NSW25
READY TO TEST YOUR KNOWLEDGE?
TAFE NSW26
TEST YOUR KNOWLEDGE
1. If a Statement of Advice (SOA) is found to be defective, the affected person (eg retail client) may take what action against
the providing entity and the authorising AFS licensee?
a) Civil action
b) Criminal action
c) Both civil and criminal action
d) Refer complaint to Code monitoring body for criminal action and suspension
Hint: CH7 of Corps Act & ASIC RG 175.216 provides for civil action against the providing entity for any loss or damages
2. Which of the following provided by a financial adviser, constitutes financial product advice?
a) Referral to a financial adviser to another licensee for specific insurance advice.
b) Advice regarding home building and home contents insurance products
c) Tax advice regarding the purchase of an investment property within an SMSF
d) Advice regarding a managed investment fund
Hint: A managed investment fund is considered a financial product. Home and contents insurance is not a financial product
and neither is property. Referrals to another adviser, is not providing financial advice.
TAFE NSWTEST YOUR KNOWLEDGE
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3) Jonathan is an authorised representative of an Australian financial services (AFS) licensee. An organisation - Tree Splicers
Pty Ltd applies to receive a designated service from Jonathan, with the company structure and shareholders listed on the
annual return submitted to the Australian Securities Investment Commission (ASIC) is as follows:
Abbass: 58%, Bertram: 22%, Penchki: 20%
Penchki is the General Manager and operations guru who administers all aspects of the company.
Which of the following scenario(s) would be applicable to Jonathan with regard to his requirements to the customer due
diligence (CDD) obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act)?
True or False?
1. Collecting and verifying customer identification information?
2. Undertaking a verification of the banking financier the company uses
3. Identifying whether a customer is an immediate family member of a politically exposes person (PEP).
TAFE NSWTEST YOUR KNOWLEDGE
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4) In time critical situations, which of the following is the most appropriate course of action for a Financial Adviser to take?
a) Provide the clients with a Statement of Advice explaining the strategy, prior to implementation of the advice.
b) Provide the advice verbally, and then confirm the advice with a formal written file note on the same day.
c) Provide the advice verbally and then follow up with a written advice document within five business days.
d) Provide the advice immediately and confirm in writing with a Record of Advice within seven business days
Hint: Provide the advice verbally and then follow up with a written advice document within five business days - see
Corporations Act 2001 – S 946C.
5) Standard 8 of the FASEA Code of Ethics requires that a Financial Adviser keep complete and accurate records of the advice
and services provided. Jenny has just completed her Masters in Financial Planning and can now specialise in securities and
derivatives and will be leaving her current employer and joining a new licensee. Which of the following is correct regarding
maintenance of her files?
A. Jenny must retain a personal copy of all client files for a minimum of seven years.
B. Jenny’s employer must retain all client files for a minimum of seven years dating from the last contact with the client.
C. Jenny’s employer must retain Jenny’s client files for seven years from the date she exits the practice.
D. Jenny’s record-keeping obligations end when Jenny hands all files back to the client.
TAFE NSW29
NEED TO STUDY/PRACTICE?
Take advantage of sitting the Practice Exam by TAFE NSW.
ADVANTAGES
• Exam condition 3.5 hours
• Test your knowledge
• Identify your gaps
https://www.tafensw.edu.au/course/-/c/c/800-000629/TAFE-Statement-in-FASEA-Practice-Exam
TAFE NSW30
QUESTIONS?
TAFE NSW31
THANK YOU
TAFE NSWAccess to webinar • content Today’s webinar recording, presentation slides and a CPD assessment quiz will be uploaded to afa.asn.au • All registrants will receive an email confirming when available • Get in touch at info@afa.asn.au if you have any questions Thank you for joining us today
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