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May exam sees 43% pass rate

Less than half of the financial advisers who sat the exam in May have passed, results show.

The May sittings represented the 17th since the introduction of the exam and saw 496 advisers attempt it; 72.2% of which were resitting the exam for at least the second time.

Results from ASIC show just 212, or 42.7%, of candidates passed.

The result is an improvement on the last sitting which saw just 32% of candidates succeed.

The next exam sitting, which will take place from July 28 to August 1, is the last opportunity for advisers who are operating under the nine-month extension to pass the exam.

To date, 20,000 advisers have sat the exam and about 91% have passed. Of those, more than 15,600 are listed as currently active on the Financial Adviser Register, ASIC said, and just 600 were new entrants to the industry.

However, more than 2400 of the candidates that passed have since ceased. Meanwhile, of the 3250 candidates who have re-sat the exam, 68% have passed.

From October 1, all advisers must have passed the exam to continue operating.

The May sitting was just the second time the exam has been administered by ASIC following the dissolution of the Financial Adviser Standards and Ethics Authority in December last year.

Read more: ASICFinancial Adviser Registeradviser exam