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ASIC releases guidance on transitional exam timeframes for advisers 

ASIC
By tzhang
22 September 2021 — 1 minute read

ASIC has provided new guidance for financial advisers under different transitional arrangements on their obligation to pass the financial adviser exam.

Following the introduction of the professional standards reforms in 2017, all financial advisers are required to pass the exam in order to continue being authorised to provide personal advice to retail clients on “relevant financial products” (i.e. financial products other than basic banking and general insurance products, and consumer credit insurance).

However, advisers who practised before 1 January 2019 (existing providers), have the benefit of special transitional arrangements.

Under the transitional arrangements, existing providers have until 1 January 2022 to pass the exam. However, on 24 June 2021, the government announced its intention to extend the cut-off date to 30 September 2022 for existing providers who have attempted the exam twice before 1 January 2022.

ASIC’s Information Sheet 260: FAQs: Timeframe for passing the financial adviser exam answers some frequently asked questions to help financial advisers who are existing providers understand their obligation to pass the financial adviser exam and the possible outcomes if they do not pass the exam within the required timeframe.

The fact sheet explains the exam obligation for existing providers, and the possible outcomes of not passing the exam within the required timeframe. It also provides information on the government’s proposal to extend the cut-off date for some existing providers. 

ASIC also provided example scenarios on exam pathways for career breaks and secondments along with outcomes related to completing the exam for existing providers who attempted the exam twice before 1 January 2022.

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Tony Zhang

Tony Zhang

Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.

Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.

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