1. What is the required timeframe for passing the exam?

If you are an existing provider (see Question 2) who was on the Financial Advisers Register (i.e. you were authorised to provide personal advice to retail clients on relevant financial products), generally you must have passed the exam by 1 January 2022 to continue to provide personal advice.

However, the Financial Sector Reform Amendment (Hayne Royal Commission Response—Better Advice) Regulations 2021 provide a nine-month extension for existing providers who sat the exam at least twice before 1 January 2022 (for further detail, see Question 4).

This means that if you qualify for the extension, you can continue to provide financial advice until 1 October 2022. From 1 October 2022, you must have passed the exam to continue to provide personal advice.

2. Who is an 'existing provider' and who is a 'relevant provider'?

Two key terms under the professional standards reforms are 'existing provider' and 'relevant provider': see Table 1. These terms are defined in the Corporations Act 2001 (Corporations Act).

A person can be either an existing provider or a relevant provider, or both.

Table 1: Who is an existing provider and who is a relevant provider?

3. I am an existing provider. What will happen if I did not pass the exam by 1 January 2022?

Table 2 gives some example outcomes for existing providers of passing or not passing the exam by 1 January 2022.

Table 2: Outcomes related to completing the exam for existing providers

Example scenarios

4. I am an existing provider and I sat the exam at least twice before 1 January 2022. What will happen if I do not pass the exam by 1 October 2022?

Existing providers who made at least two unsuccessful attempts to pass the exam before 1 January 2022 have until 1 October 2022 to pass the exam: see Question 1.

Table 3 gives some example outcomes for these existing providers of passing or not passing the exam by 1 October 2022.

Table 3: Outcomes related to passing the exam for existing providers who sat the exam twice before 1 January 2022

5. How do the education and training standards apply to 'new financial advisers'?

The professional standards require any person who wishes to be authorised as a financial adviser to meet particular education and training requirements, namely to:

• hold a qualification approved by the Minister (degree standard)
• pass the financial adviser exam
• participate in 40 hours of continuing professional development (CPD) each year
• complete a full-time professional year that includes at least 100 hours of structured training.

The professional standards also require any person who wishes to be authorised as a financial adviser to comply with the Financial Planners and Advisers Code of Ethics 2019. The Code is a set of principles and core values in the areas of ethical behaviour, client care, quality process and professional commitment.

Transitional arrangements

Financial advisers who worked between 1 January 2016 and 1 January 2019 and meet the definition of 'existing provider' (see Question 1) may be able to take advantage of transitional arrangements that apply to them when meeting the education and training standards: see How the reforms affect you.

For example, these transitional arrangements include not being required to complete the professional year, and having until 1 January 2026 to meet the degree standard. 

However, as set out in Table 2 and Table 3, existing providers who are relevant providers and do not pass the exam by the relevant exam cut-off date (being either 1 January 2022 or 1 October 2022) will lose their relevant provider status.

In addition, they will be required to complete the following education and training before again being authorised as a relevant provider to provide personal advice to retail clients:

• pass the financial adviser exam
• complete the professional year, and
• meet the degree standard.