FASEA Education Standards 2 — Questions and Answers
Question 1: Under FASEA's education framework, which body is responsible for approving courses that meet the education standard for financial advisers?
- ASIC
- FASEA (Correct answer)
- APRA
- The Financial Planning Association
Correct answer: FASEA
FASEA was the body responsible for approving courses and qualifications that met the education standards for financial advisers.
Question 2: A financial adviser holds a pre-existing bachelor's degree in a non-financial field. Under FASEA standards, what is the most likely pathway for them to meet the education requirement?
- They are automatically exempt from further study
- They must complete an approved graduate diploma or equivalent (Correct answer)
- They only need to pass the FASEA exam
- They must obtain a new bachelor's degree in finance
Correct answer: They must complete an approved graduate diploma or equivalent
Advisers with non-relevant prior degrees generally needed to complete an approved graduate diploma or equivalent bridging qualification.
Question 3: Which of the following best describes an 'approved degree' under FASEA's education standards?
- Any bachelor's degree from an Australian university
- A degree in a related field approved by FASEA covering required knowledge areas (Correct answer)
- A degree recognised by the Financial Planning Association
- Any overseas degree validated by ASIC
Correct answer: A degree in a related field approved by FASEA covering required knowledge areas
An approved degree must be in a relevant field and cover specific knowledge areas as determined and approved by FASEA.
Question 4: How many units are typically required in an FASEA-approved graduate diploma for existing advisers seeking to meet the education standard?
- 2 units
- 4 units
- 8 units (Correct answer)
- 12 units
Correct answer: 8 units
The FASEA-approved graduate diploma pathway typically comprised eight units covering relevant knowledge areas.
Question 5: Under FASEA's framework, the ethics component of the education standard requires completion of a unit covering which area?
- Taxation law
- Financial markets regulation
- Ethics and professionalism in financial services (Correct answer)
- Estate planning
Correct answer: Ethics and professionalism in financial services
An approved ethics unit covering ethics and professionalism in financial services is a mandatory component of the education standard.
Question 6: Which transition arrangement allowed existing advisers with relevant degrees to meet the education standard earlier than the general deadline?
- Completing only the FASEA ethics exam
- Having their degree recognised as an approved qualification by FASEA (Correct answer)
- Passing a bridging course administered by ASIC
- Applying for a permanent exemption through their licensee
Correct answer: Having their degree recognised as an approved qualification by FASEA
Existing advisers whose prior degrees were assessed and recognised as approved qualifications by FASEA could satisfy the education standard without further study.
Question 7: What is the primary purpose of the knowledge requirements specified in FASEA's education standards?
- To limit the number of new entrants into financial advice
- To ensure advisers have competency across core subject areas relevant to providing financial advice (Correct answer)
- To align Australian standards with US financial planning qualifications
- To replace the requirement for professional indemnity insurance
Correct answer: To ensure advisers have competency across core subject areas relevant to providing financial advice
The knowledge requirements ensure advisers possess the necessary competency across areas such as financial planning, law, and ethics to serve clients appropriately.
FASEA Education Standards 2
Under FASEA's education framework, which body is responsible for approving courses that meet the education standard for financial advisers?