Federal Register of Legislation - Australian Government

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Determinations/Other as made
This instrument approves the exam that a person must pass to meet the second of the education and training standards under section 921B of the Corporations Act 2001 (see subsection 921B(3) of the Act).
Administered by: Treasury
Registered 06 Feb 2019
Tabling HistoryDate
Tabled HR12-Feb-2019
Tabled Senate12-Feb-2019
Table of contents.

 

Corporations (Relevant Providers Exams Standard) Determination 2019

Financial Adviser Standards and Ethics Authority Ltd, the standards body for Part 7.6 of the Corporations Act 2001, makes the following determination.

Dated                           5 February 2019




The common seal of Financial Adviser Standards and Ethics Authority Ltd, affixed by authority of its directors in the presence of:

 

 

 

C WALTER

..........................................................

Signature of director

 

CATHERINE WALTER AM

..........................................................

Name of director (block letters)

)

)

)

)

[Sealed]

S LONGSTAFF

..........................................................

Signature of director

 

DR SIMON LONGSTAFF AO

..........................................................

Name of director (block letters)

 

 

 


Contents

1......... Name............................................................................................................................... 1

2......... Commencement............................................................................................................... 1

3......... Authority......................................................................................................................... 1

4......... Definitions....................................................................................................................... 1

5......... Approval of exams.......................................................................................................... 2

6......... Standard: knowledge and skills areas.............................................................................. 2

7......... Standard: exam questions................................................................................................ 3

8......... Standard: duration of exam.............................................................................................. 3

9......... Standard: marking exams................................................................................................. 3

10....... Standard: terms of registration for sitting exams.............................................................. 4

 


1  Name

                   This instrument is the Corporations (Relevant Providers Exams Standard) Determination 2019.

2  Commencement

                   Except as provided in this instrument, this instrument commences the day after it is registered.

Note:          See subsection 10(20).

3  Authority

                   This instrument is made under subparagraph 921U(2)(a)(ii) of the Act.

4  Definitions

Note:          Code of Ethics, relevant provider and monitoring body are defined in section 910A of the Act. Financial product advice is defined in section 766B of the Act.

             (1)  In this instrument:

Act means the Corporations Act 2001.

applied ethical and professional reasoning and communication area has the meaning given by paragraph 6(3)(b).

Authority means Financial Adviser Standards and Ethics Authority Ltd.

candidate, for an exam, means a person sitting the exam.

eligible candidate has the meaning given by subsection (2).

exam means an exam approved under this determination.

exam administrator means the person identified by the Authority, by notice published on its website, as the exam administrator.

exam location means a place at which an exam is to be held.

financial advice construction area has the meaning given by paragraph 6(3)(c).

financial advice regulatory and legal obligations area has the meaning given by paragraph 6(3)(a).

knowledge and skills area means the applied ethical and professional reasoning and communication area, the financial advice regulatory and legal obligations  area or the financial advice construction area.

registered means registered by the exam administrator for an exam.

             (2)  A person is an eligible candidate for an exam if:

                     (a)  any of the following apply:

                              (i)  the person is an existing provider as defined in section 1546A of the Act;

                             (ii)  the person meets the education and training standard set out in subsection 921B(2) of the Act and intends to be registered as a provisional relevant provider after 1 January 2019;

                            (iii)  a monitoring body has imposed on the person a sanction requiring the person to sit an exam;

                            (iv)  the person has been permitted to sit the exam as a result of an application under paragraph 10(18)(a); and

                     (b)  the person is registered for the exam; and

                     (c)  the person has not sat an exam within 3 months before registering for the exam.

Note:          For subparagraph (a)(ii), the education and training standard set out in subsection 921B(2) of the Act is met if the person:

(a)    has completed an approved bachelors or higher degree, or an approved equivalent qualification (see Corporations (Degrees, Qualifications and Courses Standards) Determination 2018); or

(b)    has completed an approved foreign qualification.

             (3)  A person is not an eligible candidate for an exam if the exam administrator has excluded the person from an exam location, or failed the person, under subsection 10(15).

5  Approval of exams

                   For an eligible candidate, an exam that:

                     (a)  is administered by the exam administrator; and

                     (b)  is administered in a way that meets the standards specified in this determination;

is approved for the purposes of subsection 921B(3) of the Act.

6  Standard: knowledge and skills areas

             (1)  This section specifies a standard relating to knowledge and skills areas.

             (2)  An exam must be designed to test whether eligible candidates have knowledge and skills, in each of the knowledge and skills areas, at AQF 7 level as described in Australian Qualifications Framework, 2nd edition (January 2013) published by the Australian Qualifications Framework Council.

Note:          On the day this instrument was registered, this publication was available at https://www.aqf.edu.au/.

             (3)  An exam must cover each of the following knowledge and skills areas as they apply in relation to financial products:

                     (a)  the financial advice regulatory and legal obligations area, that is to say, the knowledge and skills needed to understand and conform to the requirements of each of the following:

                              (i)  Chapter 7 of the Act;

                             (ii)  the Anti-Money Laundering and Counter-Terrorism Financing Act 2006;

                            (iii)  the Privacy Act 1988;

                            (iv)  the Tax Agent Services Act 2009;

                     (b)  the applied ethical and professional reasoning and communication area, that is to say, the knowledge and skills needed to be able to apply ethical and professional reasoning, and to communicate effectively, including the ability to:

                              (i)  identify the obligations imposed by the Code of Ethics and how to comply with them; and

                             (ii)  articulate the importance of a code of ethics and the need for financial planners to conform to the Code of Ethics in the context of professional standards; and

                            (iii)  apply ethical frameworks to solve dilemmas encountered as a relevant provider; and

                            (iv)  identify the importance of, and demonstrate, the duty of a relevant provider to act with integrity and in the best interest of each of the provider’s clients; and

                             (v)  identify the need for due diligence and the need to maintain client files and records;

                     (c)  the financial advice construction area, that is to say, the knowledge and skills needed to construct suitable financial product advice through an understanding of:

                              (i)  the environment in which financial product advice is sought by and given to new and existing clients; and

                             (ii)  the need to prevent and avoid misconduct and inappropriate advice; and

                            (iii)  population and community profiles at a retail client level; and

                            (iv)  consumer behaviour and decision-making; and

                             (v)  the advice strategies suitable for different retail clients.

7  Standard: exam questions

             (1)  This section specifies a standard relating to the questions in an exam.

             (2)  There must be at least 70 questions, comprising:

                     (a)  at least 64 multiple choice questions; and

                     (b)  at least 6 written response questions requiring short answers or report writing.

8  Standard: duration of exam

             (1)  This section specifies a standard relating to the duration of an exam.

             (2)  A candidate in an exam must have 3.5 hours to complete the exam, which period must include at least 15 minutes reading time.

9  Standard: marking exams

             (1)  This section specifies a standard relating to the marking of an exam.

             (2)  An exam must show the maximum marks that may be awarded for each question.

             (3)  The questions in an exam, and the maximum marks that may be awarded for each question, must be approved by persons with appropriate expertise, appointed by the exam administrator.

10  Standard: terms of registration for sitting exams

             (1)  This section describes standards relating to the terms of registration for sitting an exam.

             (2)  The terms on which a person is registered to sit an exam must comply with this section.

Note 1:       The terms of registration for sitting an exam, and the exam location, will be given to each eligible candidate for the exam on registration.

Note 2:       The exam administrator will charge a fee for an exam.

Entry into an exam location

             (3)  A person will not be admitted to the exam location for an exam unless the person:

                     (a)  is an eligible candidate for the exam; or

                     (b)  is an employee or other personnel of the exam administrator.

             (4)  The terms of registration may impose identification requirements for eligible candidates to be admitted to the exam location.

Note:          For example, requirements for photo ID may be imposed.

Equipment

             (5)  Unless subsection 10(19) applies, an exam must be completed using a computer provided by the exam administrator. The computer must give electronic access to statutory materials and materials published by ASIC and other relevant regulators, as specified by the Authority.

             (6)  A candidate may not use a device (other than the computer provided for the candidate by the exam administrator) to access the internet from an exam location.

             (7)  A candidate may not bring any equipment or materials into the exam location without the approval of the exam administrator.

             (8)  Approval under subsection (7) will only be given for equipment needed because of the candidate’s special needs. The terms of registration may set out procedures for applying for and gaining approval.

             (9)  The exam administrator will make reasonable and appropriate provision for candidates with special needs if the administrator is notified at least 30 days before the scheduled date for the exam. The terms of registration may set out requirements for notifications.

Note           For example, provisions made may include adjustable desks, ensuring that computer screens have larger fonts, higher contrasting colours and reader assistance (for candidates with visual impairments) and support to ensure that invigilators can communicate effectively with a candidate with a hearing impairment.

Conduct of the exam

           (10)  An exam will be invigilated.

           (11)  A candidate must comply with an instruction or direction given by an invigilator in connection with the exam.

           (12)  A candidate must not do any of the following:

                     (a)  communicate, by any means, with any other person, including another candidate, during an exam without the permission of an invigilator;

                     (b)  read or attempt to read another candidate’s work during an exam;

                     (c)  copy from another candidate during an exam.

           (13)  Nothing prevents a candidate from communicating appropriately with an invigilator.

           (14)  A candidate must not start to record answers to exam questions until after the reading time for the exam has ended.

Consequences of misconduct

           (15)  If a candidate breaches subsection (5), (6), (7), (11), (12) or (14), the exam administrator may do either or both of the following:

                     (a)  exclude the candidate from the exam location;

                     (b)  fail the candidate.

Marking and results

           (16)  Candidates for an exam will be notified only that they have passed or failed the exam, which will be marked to an overall credit level.

Review of results

           (17)  A candidate who has failed an exam may apply to the exam administrator for a review of the marking of the candidate’s answers to the written response style questions in the exam. The terms of registration must:

                     (a)  specify how and by when that application may be made; and

                     (b)  provide for the review to be conducted; and

                     (c)  provide for the results of the review to be communicated to the candidate.

A candidate may make only 1 application for review for an exam.

Note:          The exam administrator will charge a fee for a review.

Deferral of exams for exceptional circumstances

           (18)  The terms of registration must provide:

                     (a)  that a registered candidate may apply to the exam administrator to defer sitting the exam due to exceptional circumstances beyond the candidate’s control, such as:

                              (i)  acute illness (including hospital admission);

                             (ii)  recent loss or bereavement (including the death of a close family member);

                            (iii)  hardship or trauma (including being victim of crime or severe disruption to domestic life);

                            (iv)  unforeseen call-up for service (including military service, court appearance, jury service or emergency service).

                             (v)  computer malfunction during the exam; and

                     (b)  for applications for deferral to be submitted in writing and no later than 14 working days of the date of the examination, unless the exam administrator otherwise agrees in the particular case;

                     (c)  for reasonable procedures for making and dealing with those applications; and

                     (d)  that, if the application is granted, the candidate may be registered for another exam without incurring additional charges.

Note:          Reasonable procedures under paragraph (c) may include requirements for medical or other certificates, or other evidence, to be provided.

Alternative arrangements

           (19)  If it is unreasonable for a candidate for an exam to travel to the exam location because:

                     (a)  the candidate lives in a remote location; or

                     (b)  the candidate is not able to travel to the exam location;

the exam administrator may, on application by the candidate, make alternative arrangements for the exam for the candidate. The alternative arrangements must ensure that the candidate sits the exam in similar circumstances, and subject to similar conditions and requirements, as other candidates.

           (20)  Subsection (19) commences on 1 January 2020.