ASIC today provided an update on the proposal to introduce a national examination for financial advisers.

ASIC has decided to delay work on the implementation of the exam to allow appropriate time for other reforms to be implemented in the financial advice sector, notably the Future of Financial Advice (FOFA) package.

ASIC views the exam as a very important initiative to ensure consistent national standards for advisers. ASIC will continue to explore options to implement this proposal at the appropriate time once the FOFA reforms have been bedded down.

In the coming months, ASIC will also consult on enhancements to the training standards for financial product advisers. ASIC’s proposed enhancements to the training standards for advisers underline the importance of strengthening the framework for adviser competency and thereby improving the overall quality of financial advice.

‘We want consumers to have greater access to quality financial advice and greater confidence in advisers. Having this framework in place, including the enhanced training standards, is an important element in achieving this objective,’ ASIC Chairman Greg Medcraft said.

Background

In April 2011 ASIC issued Consultation Paper 153 Licensing: Training and assessment framework for financial advisers (CP 153) in which it sought feedback on proposals regarding an assessment and professional development framework for financial advisers, which included a national exam (refer 11-75MR).

Feedback to CP 153 has been largely supportive.

In June 2012, ASIC announced the next phase of its consultation with the financial advice industry about its proposal to implement a national examination for financial advisers (refer 12-146MR).