Part 2Education and training standards for relevant providers

Part 2—Education and training standards for relevant providers

Division 1—The first standard

Note: See Corporations (Degrees, Qualifications and Courses Standards) Determination 2020 for the currently approved bachelor or higher degree, or equivalent qualifications. The instrument, originally made by the Financial Adviser Standards and Ethics Authority Ltd, was saved by section 1684M of the Act and will continue in force until it is repealed and remade by the Minister.

Division 2—The second standard

2‑30 Approved principles in relation to exams

Under subsection 921B(6) of the Act, each of the principles specified in a provision in this Division is an approved principle for the purposes of exams to be administered by ASIC under subsection 921B(3) of the Act.

2‑35 Principle 1: testing relevant knowledge and skills

(1) This section specifies a principle relating to testing relevant knowledge and skills. (2) An exam must be designed to test whether the person taking the exam has the knowledge and skills covered in subsection (3) at a AQF level 7 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) For the purposes of subsection (2), an exam must cover each of the following knowledge and skills as they apply in relation to financial products: (a) 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) Subdivision 50-AA of the Tax Agent Services Act 2009; (b) 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 codes of ethics and codes of conduct, being guides of principles designed to help professionals conduct business honestly and with integrity, and the need for relevant providers 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) 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 of retail clients; and (iv) consumer behaviour and decision‑making; and (v) the advice strategies suitable for different retail clients.

2‑40 Principle 2: exam questions

(1) This section specifies a principle relating to the questions in an exam. (2) An exam must contain at least 70 questions. (3) An exam must contain only multiple-choice type questions.

2‑45 Principle 3: duration of exams

(1) This section specifies a principle relating to the duration of an exam. (2) A person taking an exam must have 3.5 hours to complete the exam, of which at least 15 minutes must be set aside as reading time.

2‑50 Principle 4: marking or scoring of exams

(1) This section specifies a principle relating to the marking or scoring 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, as determined by ASIC.

2‑55 Principle 5: processes and procedures for the taking of exams

(1) This section specifies principles relating to processes and procedures relating to the taking of exams. Who may sit an exam? (2) A person may only take an exam if: (b) the person has applied to ASIC to take the exam (in the manner and form approved by ASIC), and has been subsequently enrolled by ASIC to take the exam at a particular date and time; and (c) the person has paid ASIC the prescribed fee to take the exam; and (d) the person has not been excluded from taking the exam under subsection (9).

Note: The amount of the fee is prescribed in the Corporations (Fees) Regulations 2001.

Methods for taking an exam (3) An exam must be taken by one the following methods, as determined by ASIC for a person: (a) by attending a location at which an exam is to be held (an exam location); (b) by way of the internet or other technology that allows the person to take the exam without being physically present at an exam location; (c) by way of alternate arrangements in accordance with subsection (13). (4) A person is not to be admitted to an exam location for an exam unless the person: (a) meets the requirements of subsection (2), and has been advised by ASIC that the person is registered to attend the location to take the exam; or (b) is staff member or agent of ASIC; or (c) is present because of alternate arrangements made by ASIC under subsection (13). (5) ASIC may impose identification requirements for persons to be admitted to an exam location.

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

(6) A person may only take an exam using the equipment and materials permitted by ASIC to be used, and ASIC may impose reasonable and appropriate restrictions on the person to ensure only permitted equipment and materials are used. Conduct of the exam (7) A person taking an exam must not engage in any type of conduct that could be reasonably described as plagiarism, cheating, collusion, deception, impersonation, or another form of similar misconduct. An exam is to be properly supervised to prevent a person from engaging in such misconduct. (8) A person taking an exam must comply with an instruction or direction included in the exam document, or that is given by a staff member or agent of ASIC in connection with the exam.

Note: An example of an instruction or direction included in the exam document is an instruction not to start to record answers to exam questions until after the reading time for the exam has ended.

Consequences of misconduct (9) If a person breaches subsection (6), (7) or (8), ASIC may do one or both of the following: (a) exclude the person from taking or continuing to take an exam; (b) fail the person. Marking and results (10) A person who has taken an exam is to be notified only that they have either passed or failed the exam, which is to be marked to an overall credit grade (a range of between 65% and 74%, with the final passing mark for a particular exam, being determined by ASIC, as informed by persons with appropriate expertise). Deferral of exams for exceptional circumstances (12) ASIC must make arrangements to give effect to all of the following: (a) that a person be able to apply to ASIC (in the manner and form approved by ASIC) to defer taking an exam at the particular date and time registered by ASIC, if due to exceptional circumstances beyond the person’s control, the person is unable to take the exam at that particular date and time; (b) establish and maintain reasonable systems and processes for making and dealing with those applications; and (c) that, if an application is granted, the person be registered to take the exam at another date and time without having to pay another fee.

Note 1: Exceptional circumstances beyond the person’s control under paragraph (a) may include acute illness, recent loss or bereavement, hardship or trauma (including being the victim of crime or severe disruption to domestic life), a natural disaster, imposition of a public health order, unforeseen call‑up for service (including military service, court appearance, jury service or emergency service), an unexpected equipment failure or malfunction during the exam.

Note 2: Reasonable processes under paragraph (b) may include requirements for medical or other certificates, or other evidence, to be provided.

Alternative arrangements (13) If ASIC is satisfied that it is reasonable and appropriate in the circumstances to do so, ASIC may make alternate arrangements as to the methods for a person to take an exam. A person requesting alternate arrangements must do so by way of an application to ASIC (in the manner and form approved by ASIC). ASIC must ensure that reasonable and appropriate provision is made for persons with special needs.

Note For example, reasonable and appropriate provisions may include adjustable desks, ensuring that computer screens have larger fonts, higher contrasting colours and reader assistance (for persons with visual impairments) and support to ensure that staff members can communicate effectively with a person with a hearing impairment.

Division 3—The third standard

Note: See Corporations (Work and Training Professional Year Standard) Determination 2018 for the currently set requirements for work and training. The instrument, originally made by the Financial Adviser Standards and Ethics Authority Ltd, was saved by section 1684M of the Act and will continue in force until it is repealed and remade by the Minister.

Division 4—The fourth standard

Note: See Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018 for the currently set requirements for continuing professional development. The instrument, originally made by the Financial Adviser Standards and Ethics Authority Ltd, was saved by section 1684M of the Act and will continue in force until it is repealed and remade by the Minister.