FAE · ASIC Financial Adviser Exam
Lesson 2 of 2 in Licensing, registration and professional standards
Who is a relevant provider or provisional relevant provider, the four education and training standards, the professional year quarter by quarter, CPD, registration with ASIC, and the action ASIC and Financial Services and Credit Panels can take.
Financial advice regulatory and legal obligations9 min read9 sections
Explained in full: The professional year for financial advisers
Checked against: Corporations Act 2001 (Cth), compilation No. 149 (19 Sep 2026): ss9 (provisional relevant provider), 910A, 912A(1)(f), 916A(4), 920A(1)(e), (2), 921B, 921BA, 921BC, 921C(2), 921E(3), 921F, 921K, 921L, 921P(2), 921S, 921T, 921Y, 921Z, 921ZB, 921ZC, 921ZE, 922HA-922HC, 922L, 923C, 1684, 1684AA, 1684D(3), (7), 1684H, 1684M; ASIC Act 2001, compilation No. 109 (19 Sep 2026): s139; Corporations (Work and Training Professional Year Standard) Determination 2018 (F2018L01804, no compilations; in force, checked on the Federal Register 25 Oct 2026): ss5, 7, 8, 10-14; Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018 (F2018L01817), compilation No. 1 (16 Jul 2020, latest; checked 25 Oct 2026): ss5, 6, 8, 9, 11, 12; Corporations (Relevant Providers—Education and Training Standards) Determination 2021, compilation No. 2 (30 May 2024, latest): Pt 2 Divs 3-4 notes, s3-125; ASIC INFO 276 Registration for relevant providers (updated Jan 2026); ASIC, Financial adviser exam: Exam preparation guidance v6.0 (Sept 2026).. Independent prep, not endorsed by ASIC.
This lesson serves the curriculum outcome 'demonstrate knowledge of legal requirements for both the individual and the licensee', and applying Chapter 7 to scenarios to identify obligations and breaches. The reading list names Part 7.6 Divisions 8A, 8B and 8C, noting that the Better Advice Act 2021 updated 8B and 8C (Exam preparation guidance v6.0, Sept 2026). Statutory extracts come with the questions.
Scenario questions here ask what a person may do given their status: provisional or not, registered or not, CPD met or not. Our practice questions drill PY quarters, supervision, CPD hours and registration events.
A relevant provider is an individual licensee, authorised representative, or employee or director of a licensee or related body corporate, authorised to give personal advice to retail clients on relevant financial products (s910A). Relevant financial products exclude basic banking, general insurance and consumer credit insurance. While doing the professional year, the person is a provisional relevant provider (s9).
| Standard | Source | Timing |
|---|---|---|
| Approved bachelor or higher degree, or equivalent | s921B(2) | Before authorisation (s921C(2)(a)) |
| Pass ASIC's exam | s921B(3) | Before authorisation, and before quarter 3 |
| At least 1 year of work and training (the professional year) | s921B(4) |
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Ollie, a provisional relevant provider at Myrtle Advice, passed the exam in May and is now in quarter 4. His supervisor, Fiona, has advised for 3 years since finishing her own professional year. Myrtle's compliance manager reviews the arrangements and concludes that … (i) Ollie may now describe himself as a 'financial adviser' on LinkedIn, having passed the exam. (ii) Fiona cannot supervise Ollie, as a supervisor needs at least 5 years' experience as a relevant provider.
Answer: D. (i) False, (ii) False
Answer: (i) False, (ii) False. Ollie is still provisional, so he cannot use 'financial adviser', and Fiona's 3 years exceed the 2-year supervisor minimum.
| May be under way at authorisation (s921C(2)(b)) |
| CPD set by the Minister | s921B(5) | Each CPD year (s921BA(4)); not while provisional |
| Comply with the Code of Ethics | s921E(3) | Always |
An experienced provider advised retail clients on products other than general insurance, consumer credit insurance and (from 1 July 2012) basic banking for at least 3,650 days between 1 January 2007 and 31 December 2021, and, before 31 December 2021, had never been banned, disqualified or given a relevant ASIC undertaking (s1684(1)). A written declaration makes them meet the degree and professional year standards; the exam still applies, and a notice must be lodged with ASIC (s1684AA(1)-(3)).
Since 1 January 2026, an existing provider who had not met the qualifications standard, or completed a Minister-determined equivalent course, by that day ceased to be a relevant provider (s1684D(3), (7)).
Vivian, a relevant provider, returns to advising after a three-year career break caring for her children. Standard 10 of the Code requires her to 'develop, maintain and apply a high level of relevant knowledge and skills'. She will be an authorised representative of Kurrajong Advice, which does not employ her. Under the CPD standard and the professional year rules … (i) Kurrajong must approve Vivian's CPD plan for her first CPD year back before she resumes practice. (ii) Vivian must complete a new professional year before she advises retail clients again.
Answer: B. (i) True, (ii) False
Answer: (i) True, (ii) False. After a 2-year-plus break Kurrajong must approve her first-year CPD plan, but no new professional year is needed.(i) True. Section 11 of the CPD Standard applies after a continuous break of 2 years or more, and s11(3) says she must not resume practice as an authorised representative of a licensee that does not employ her unless that licensee has approved her CPD plan for the first CPD year back; Kurrajong must be satisfied the plan addresses gaps from her absence (s11(4)), which is how the standard serves Standard 10.(ii) False. Section 7(2) of the Professional Year Standard says a relevant provider who is not undertaking a professional year need not meet it, and its note gives a return from absence as the example.Rule: A break of 2 years or more triggers a licensee-approved CPD plan, not a second professional year.Source: Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018 s11 (compilation No. 1, 16 Jul 2020); Corporations (Work and Training Professional Year Standard) Determination 2018 (F2018L01804) s7(2); Financial Planners and Advisers Code of Ethics 2019 (F2019L00117), Standard 10
Case study FAE-C01, question 3 of 5: Westside Planning's new entrant. Westside Planning Pty Ltd, in Parramatta, holds an AFS licence authorising personal advice to retail clients on superannuation, managed investments and life risk insurance. It has six advisers, all relevant providers, about 900 clients and two directors: Daniel Reyes, 52, who has advised for 11 years, and Helen Park, 58, who has advised for 15 years. In February Westside hired Chloe Tan, 24, who holds an approved Bachelor of Financial Planning, on a salary of A$68,000. Chloe started her professional year on 1 March with Daniel as her supervisor. During quarters 1 and 2 she sat in on Daniel's client meetings, drafted file notes and prepared draft SOAs for his review. She sat the financial adviser exam in June and passed. Westside's practice manager, Gina Walsh, who is not a relevant provider, now wants Chloe to run first meetings with new clients on her own from 1 September, and to prepare and present Statements of Advice. To promote the service, Gina plans to list Chloe on Westside's website as 'Associate Financial Planner'. Daniel will be overseas for most of October and expects to be hard to reach. On 12 October Chloe has an SOA ready for Mr Farouk, who wants to act before the end of the month. Daniel is overseas and cannot be contacted, and Gina offers to approve the SOA herself so it can go out that day. What is the BEST course of action for Westside?
Answer: B. Have another eligible supervisor of Chloe approve the SOA in writing before it is given
Answer: Have another eligible supervisor of Chloe approve the SOA in writing before it is given. Section 921F(4) requires a supervisor's written approval of any SOA a provisional relevant provider gives, so Westside should give Helen supervisory responsibility and have her approve the SOA first.Why not the others:• Give the SOA on 12 October and have Daniel approve it…: approval after delivery does not comply with s921F(4).• Have Gina approve the SOA: a licensee officer can stand in for the supervisor: Gina is not a relevant provider, so she cannot be a supervisor however senior she is.• Give the SOA as a draft marked…: calling the SOA a draft does not change that advice is being provided.Watch out: Once Helen is a supervisor, Mr Farouk must also be told her name (s921F(6)(a)).Rule: A supervisor must be a relevant provider who is not provisional and has supervisory responsibility for the trainee (s921F(2)), and must approve in writing any SOA the provisional relevant provider gives a retail client (s921F(4)).Source: Corporations Act 2001 (Cth) s921F(2), (4), (6)(a) (compilation No. 149, 19 Sep 2026)
Case study FAE-C181, question 5 of 8: Lorikeet Advice's trainee and CPD year. Lorikeet Advice Pty Ltd, in Cairns, holds an AFS licence covering personal advice to retail clients on superannuation, managed investments and life risk insurance. Its CPD year runs from 1 July to 30 June. It has three advisers. Hannah Moore, 46, a director and relevant provider since 2009, supervises the firm's trainee. Joel Brennan, 38, is a relevant provider employed full-time. Bec Lawson, 41, a relevant provider, works three days a week for the whole of 2026–27 while caring for her father after a stroke; Lorikeet agreed in writing in June 2026 that she could do so. Tomasi Fifita, 24, joined Lorikeet in January 2026 with an approved Bachelor of Commerce (Financial Planning). He began his professional year on 2 February 2026 with Hannah as his supervisor and has booked a sitting of the financial adviser exam. Lorikeet's office manager, Carly, who is not a relevant provider, handles client bookings and ASIC notices. The directors are stretched. Lorikeet's CPD policy, adopted in 2024, sets out its CPD year but approves no CPD activities, leaving each adviser to choose their own courses. File reviews happen when Hannah has time. Carly wants every new client to meet 'the whole team', including Tomasi, from his first week, and she has told Hannah that formal paperwork for a trainee 'can wait until he is actually giving advice'. Standard 10 of the Code says: 'You must develop, maintain and apply a high level of relevant knowledge and skills.' Bec asks how many hours of qualifying CPD she must complete in Lorikeet's 2026–27 CPD year while working three days a week. Her minimum is…
Answer: B. 36 hours, as Lorikeet consented in writing before the year began
Answer: 36 hours, as Lorikeet consented in writing before the year began. Section 9(1) of the CPD Standard sets 40 hours of qualifying CPD a year, but 36 in special circumstances where the relevant provider works part-time for the whole CPD year with the responsible licensee's prior written consent.Why not the others:• 24 hours, pro-rated to her three-day week: there is no pro rata reduction to 24 hours.• 28 hours, the licensee-approved share of the full-time minimum: 28 hours is the 70% of the full-time minimum that must be licensee-approved (s9(3)), not a minimum in its own right.• 40 hours, as part-time work never reduces the CPD minimum: 40 hours is the general rule, but the determination reduces it in exactly this case.Watch out: Bec qualifies because she works part-time for all of 2026–27 to care for her father, and Lorikeet agreed in writing in June 2026, before the year began on 1 July.Rule: The minimum is 40 hours; 36 needs special circumstances, part-time work all year and prior written licensee consent.Source: Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018 s9(1), (3) (compilation No. 1, 16 Jul 2020); Financial Planners and Advisers Code of Ethics 2019 (F2019L00117), Standard 10
Case study FAE-C03, question 5 of 5: Hamish moves licensee. Hamish Clarke, 46, has been a relevant provider for nine years. He passed the financial adviser exam in 2021 and completed an approved graduate diploma in 2024. He looks after about 140 clients, mostly pre-retirees, and earns about A$180,000 a year. In August he resigned from Summit Wealth, where he had advised since 2017, and joined Tidewater Advisers, a different AFS licensee in Newcastle. Summit's CPD year runs from 1 January to 31 December; Tidewater's runs from 1 July to 30 June. By the time he left Summit, Hamish had completed 31 hours of CPD for Summit's year, including 4 hours of professionalism and ethics. Tidewater wants Hamish advising clients within a week of his start date, and 60 of his Summit clients have asked to follow him. Hamish also plans to give tax (financial) advice on salary-sacrifice and super contribution strategies at Tidewater, which he did not do at Summit. He is not a registered tax agent, but in 2025 he completed an approved commercial law course and an approved taxation law course. Tidewater's recruitment officer, Nadine, is preparing his authorisation. Nadine prepares Tidewater's application to register Hamish in relation to Tidewater, which must be in force before he advises any of the 60 clients following him. Given his tax (financial) advice plans, the application MUST include a written declaration by Tidewater that Hamish…
Answer: D. is a qualified tax relevant provider
Answer: is a qualified tax relevant provider. Section 921ZB(2)(b)(vi) requires the licensee's written declaration that a relevant provider who provides, or is to provide, a tax (financial) advice service is a qualified tax relevant provider.Why not the others:• is a registered tax agent with the Tax Practitioners Board: tax agent registration is one route, not a requirement.• met the CPD standard in Summit's last completed CPD year: CPD compliance in Summit's year is not a declaration item.• holds a bachelor degree with a major in taxation law: the taxation law requirement is a course, not a degree major.Rule: Under s910A a qualified tax relevant provider is a relevant provider who is a registered tax agent or meets the course requirements determined under s921BB(1) (commercial law and taxation law courses, ss3-60 to 3-70 of the 2021 determination), which Hamish's 2025 courses satisfy.Source: Corporations Act 2001 (Cth) ss910A, 921BB(1), 921ZB(2)(b)(vi) (compilation No. 149, 19 Sep 2026); Corporations (Relevant Providers—Education and Training Standards) Determination 2021 ss3-60 to 3-70 (compilation No. 2, 30 May 2024)
