FASEA FASEA Financial Planning and Advice Standards 1 — Questions and Answers
Question 1: Under FASEA education requirements, what minimum qualification level must new financial advisers obtain?
- Certificate IV in Finance
- Diploma of Financial Planning
- Bachelor's degree or equivalent in an approved field (Correct answer)
- Graduate Certificate in Financial Planning
Correct answer: Bachelor's degree or equivalent in an approved field
FASEA requires new financial advisers to hold at least a bachelor's degree or equivalent qualification in an approved field of study.
Question 2: The FASEA Financial Adviser Exam (FAE) is a requirement for which group of advisers?
- All financial advisers regardless of experience (Correct answer)
- Only new advisers entering the profession after 2019
- Advisers who have complaints on their record
- Advisers working in superannuation only
Correct answer: All financial advisers regardless of experience
All financial advisers, including existing practitioners, were required to pass the FASEA Financial Adviser Exam as part of the professionalism reforms.
Question 3: What is the primary purpose of the FASEA Code of Ethics for financial advisers?
- To set product pricing standards for financial products
- To establish professional and ethical standards that protect client interests and build public trust (Correct answer)
- To regulate investment returns for clients
- To set licensing fees for financial advice businesses
Correct answer: To establish professional and ethical standards that protect client interests and build public trust
The FASEA Code of Ethics establishes the ethical and professional standards that financial advisers must meet to protect clients and restore public confidence in the industry.
Question 4: How many standards are contained in the FASEA Code of Ethics?
- 5
- 8
- 12 (Correct answer)
- 15
Correct answer: 12
The FASEA Code of Ethics contains 12 standards that govern the professional and ethical conduct of financial advisers.
Question 5: Under FASEA standards, what does the term 'personal advice' refer to?
- Advice given in person face-to-face
- Advice that takes into account a client's personal circumstances and objectives (Correct answer)
- Advice provided by a friend or family member
- Advice given outside of business hours
Correct answer: Advice that takes into account a client's personal circumstances and objectives
Personal advice is financial advice that takes into account the client's specific circumstances, objectives, and financial situation, as opposed to general advice.
Question 6: What distinguishes 'general advice' from 'personal advice' under FASEA and Corporations Act standards?
- General advice is free; personal advice is paid
- General advice does not take into account personal circumstances; personal advice does (Correct answer)
- General advice is given by paraplanners; personal advice by advisers
- General advice requires an SOA; personal advice does not
Correct answer: General advice does not take into account personal circumstances; personal advice does
General advice is not tailored to any individual's circumstances, while personal advice specifically considers the client's financial situation, needs, and objectives.
FASEA FASEA Financial Planning and Advice Standards 1
Under FASEA education requirements, what minimum qualification level must new financial advisers obtain?