Education and professional standards for financial advisers

For new entrants, the minimum requirements are:

• Hold an approved bachelor’s degree (or equivalent)
• Undertake a professional year (PY)
• Pass the FAS exam prior to quarter 3 of the PY

Existing advisers who qualify for the 10-year experience pathway:

• Do not have any tertiary requirements
• Must have passed the FAS exam

For existing advisers who do not qualify for the 10-year experience pathway and are registered as current on the FAR between 1 Jan 2007 – 1 Jan 2019, the maximum education requirements are:

• An approved graduate diploma (AQF8) comprising eight subjects by 1 January 2026
• Passed the FAS exam by 1 Jan 2021

The minimum education requirements are:

• One bridging course about the Code of Ethics (if it was not included in their qualification)
• Depending on their previous formal education or coursework for industry designations, may be required to complete anywhere between one or eight subjects (including up to three bridging courses) at AQF8

The three bridging courses are:

• Financial Advice Regulatory and Legal Obligations
• Ethics for Professional Advisers
• Client and Consumer Behaviour, Engagement and Decision Making

Individual who provides personal financial advice to clients:

• Registered on the FAR between 1 Jan 2016 and 1 Jan 2019
• Does not meet the ‘experienced adviser’ criteria

Individual who provides personal financial advice to clients, and

• Has 10 or more years’ cumulative experience in Australia between 1 Jan 2007 and 31 Dec 2021
• No disciplinary action recorded on the FAR before 31 Dec 2021
• Has passed the FAS exam

Individuals who are not existing or experienced advisers.

The Australian Qualifications Framework (AQF) specifies the standards for educational qualifications in Australia. It’s administered by the government and ranges from vocational education to higher education. There are 10 levels of AQF, commonly known as degrees, diplomas and certificates.

AQF ensures national recognition and consistency as well as a common understanding of what defines each qualification.

Each of the 10 levels are defined by a set of learning outcomes that should be attained by a graduate of a qualification at that level. Similar to a university, Kaplan Professional is a registered Institute of Higher Education regulated by the Tertiary Education Quality and Standards Agency (TEQSA), and able to offer AQF Level 7 -10 qualifications, as well as short courses addressing specific training needs that don’t result in an AQF qualification.

*Depending on version completed. May require additional FAS Code of Ethics subject.

Financial advisers are required to complete 40 hours of ‘qualifying CPD activities’ in each CPD year with a minimum requirement in the following areas:

• Technical Competence – 5 hours
• Client Care and Practice – 5 hours
• Regulatory Compliance and Consumer Protection – 5 hours
• Professionalism and Ethics – 9 hours
• General – no set minimum

Kaplan Professional is the leading provider in the provision of industry CPD. Our flagship online platform Ontrack provides organisations and individuals with the content, tracking, reporting and consultancy they need to manage and meet their CPD obligations.

The FAS Financial Adviser Examination is a fundamental component of the education standards all financial advisers must pass to provide personal financial advice to clients.

From 1 January 2019, new entrants to the industry must pass the exam after they’ve completed a FAS-approved degree, and before commencing quarter 3 in their professional year.

The exam will test the practical application of advisers’ knowledge in the following competency areas:

• Financial Advice Regulatory and Legal Requirements
• Financial Advice Construction
• Applied Ethical and Professional Reasoning and Communication

The duration of the exam is 3.5 hours (including 15 minutes’ reading time) and consists of multiple-choice and written-response questions.

We’re delighted to offer a range of online exam preparation resources to help you prepare and practice prior to sitting FAS’s Financial Adviser Examination. Gain access to an online preparation room as well as an online proctored practice exam, designed to simulate the structure, duration and exam conditions of the Financial Adviser Examination. Click here to learn more.

*Depending on version completed. May require additional FAS Code of Ethics subject.

RG 146 may continue to apply to existing advisers. Existing advisers should confirm these requirements with their licensee.