Technique rather than technical knowledge is the problem that hampers exam candidates struggling to pass the advisor exam, according to former FASEA national exam director Farrell Platt.
Speaking on a webcast hosted by the Association of Financial Advisors, Platt cited his experience reviewing issues candidates had in their answers to exam questions.
“Most of the time it’s a technique, not a technical knowledge,” Platt said. “I know it from history and because I know how the exam fits.”
Candidates who do not pass the exam will get feedback in the three areas covered: financial advice, regulatory and legal obligations; applied ethical reasoning and professional communication; and financial construction subdomain areas.
FASEA previously provided broader feedback on where advisors were struggling, which included the implementation of Chapter 7 of the Law of joint-stock companies a Advisory Statements and Financial Services Guides.
“Do it [candidates] it is necessary to remove chapter 7 of the Law of joint-stock companies and start reading it out of nowhere? Absolutely, in your time because it’s a fantastic read, ”Platt said.“ But for the purpose of preparing for the exam … RG 175 is much easier to read than the Law of joint-stock companies. It does not replace or contradict it; proves it. It’s easier to move your head. ”
Platt also recommended RG 78 and ASIC Fact Sheet 259 for a more detailed reading of non-compliance reports, another area cited as a problem by FASEA.
Shut it down, Eddie
Platt pointed to multiple-choice questions as a style that advisors may stumble upon unexpectedly, especially for candidates who do not have significant experience in exams.
“Read the question carefully, don’t rush,” Platt said. “It simply came to our notice then. Do not enter anything that does not belong, just leave the question “.
Platt said candidates have worked with “jumping to solution mode” too quickly.
“By rushing and taking over, you’ll lose key points. Look for the keywords or highlights you need to work with.”
Unlike “Who Wants to Be a Millionaire,” there’s no phone call to a friend or asking the public for options, but Platt indicated that you can quickly cut the options in half.
“Sometimes it’s easy to get rid of the two that don’t belong there and you’ll do a removal process for a smaller task.”
Platt said this is the process for getting the exam to do the job for the candidate.
“The exam is there to help you. If you take those points and get the exam part of the job for you, you’ll have a much smoother experience and be able to get out on the other side.”
Reaching the final two options, which Platt describes as the key and the detractor, is when the question can be reassessed.
“Look at the keywords to guide you what’s next,” Platt said. “This will guide you to the key and the detractor will simply disappear. Block him and move on to your next question.
A little empathy for those who struggle
AFA CEO Phil Anderson acknowledged that he faced the heat to support colleagues who are struggling with the exam.
“It’s just not an explanation to say they’re not approving because they don’t have the technical knowledge,” Anderson said.
He noted a number of factors that affect a candidate’s ability to pass the exam, such as issues related to mentality, language difficulties, or problems using technology effectively.
“I’ve been trying to say we still believe there are a lot of good advisors who can still pass the exam.”
The October extension was a polarizing move with data from Adviser Ratings showing that most advisors did not believe an extension should have been granted.
Data provided by the corporate regulator to Professional Planner this week showed that 650 candidates had registered for the July exam, although it could not confirm how many candidates were sitting as part of their eligibility granted by the extension.
Earlier this year, the ASIC presented data to a parliamentary committee showing that 882 FAR advisers were eligible for the extension, although Wealth Data believes that figure is close to four figures.
Advisor Exam, AFA, Financial Advisors Association, Non-Compliance Reports, Chapter 7, Corporate Law, Education, Farrell Platt, FASEA, FASEA Exam, Financial Services Guide, Phil Anderson, Advisory Statements