Risk Regulatory Update

FASEA announces underwhelming March exam results

The Financial Adviser Standards and Ethics Authority (FASEA) exam for financial advisers has seen the March results published. Seventy-four per cent of those sitting the exam for the first time passed the March exam (compared with 83 per cent across all exams), while just an overall 69 per cent of candidates passed if those sitting for the second or third time are counted. Unsuccessful candidates have just a 65 per cent pass rate on a resit.

Government: Advisers will not have to apply for a new licence for claims

Final government regulation regarding life insurance claims handling means financial advisers will not be required to apply for a new licence authorisation to help clients process an insurance claim. The final Financial Sector Reform (Hayne Royal Commission Response) (Claimant Intermediaries) Regulations 2021 released recently offered clarity whereby financial advisers receive an exemption in varying their Australian financial services licence to provide claims handling. The original wording suggested advisers would be required to have additional licence authorisation for insurance claims. Practice staff are included.