The chairman of an Australian financial adviser’s association has called for a boycott of the Financial Adviser Standards and Ethics Authority (Fasea) exam in the country.
Alex Vagliviello, United Financial Advisers Association (UFAA) chairman, said it does not “bestow an industry accreditation on passing or as a reference to assist consumers understand or appreciate an individual adviser’s competency”.
“Insultingly, it doesn’t even count towards an adviser’s annual continual professional development (CPD) requirement despite the amount of time this exercise entails,” he said.
“Yet failure to pass the exam will end an adviser’s business putting an end to their livelihood regardless of years of practice and experience.”
Vagliviello said that it was for this reason that the UFAA was now calling for a boycott of the exam and “seeking a practical alternative that is both honest, transparent and filled with integrity”.
He added: “Overcome by reform fatigue, advisers are leaving the industry in record numbers with those remaining under severe strain as their businesses cope with a never-ending deluge of administrative and compliance demands.
“In this sense, the sector finds itself unique in that these confusing compliance demands, when compared to other similar industries, is dissuading new entrants considering a career in financial services.”