100+ Free Financial Adviser Exam Practice Questions

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2026 Statistics

Key Facts: Financial Adviser Exam Exam

1 January 2022

ASIC took over the Financial Adviser Exam from FASEA, with ACER delivering it

ASIC - Financial adviser exam

Around 70 questions

Selected-response items across the three knowledge areas

ASIC - Financial adviser exam exam policy

3.5 hours

Total exam time, including 15 minutes reading time

ASIC - About the financial adviser exam

Credit standard

Pass mark is a credit standard (about 65% or above) at AQF level 7

ASIC - Financial adviser exam

$1,500

Exam fee for each sitting, payable to ACER

ASIC - Book to sit the exam

January 2024

Short-answer questions removed; the exam became all selected-response

ASIC - Financial adviser exam updates

3 knowledge areas

Regulatory and legal obligations, advice construction, and applied ethical reasoning

ASIC - Financial adviser exam curriculum

92% cumulative pass rate

20,963 of 22,611 candidates had passed by March 2026

ASIC - March 2026 financial adviser exam results

The Financial Adviser Exam is the ASIC exam that relevant providers must pass to give personal advice to retail clients in Australia; ASIC took it over from FASEA on 1 January 2022 and ACER delivers it. It has around 70 selected-response questions across three knowledge areas - regulatory and legal obligations, advice construction, and applied ethical and professional reasoning - and since January 2024 it is entirely multiple choice and true/false. The exam runs 3.5 hours including 15 minutes reading time, is graded to a credit standard (about 65% or above) at AQF level 7, and costs $1,500 per sitting. Many questions are short client vignettes testing the best interests duty and the Code of Ethics. This 100-question bank gives original scenario-based practice using current Australian financial-services law.

Sample Financial Adviser Exam Practice Questions

Try these sample questions to test your Financial Adviser Exam exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under section 961B of the Corporations Act 2001, what must a financial adviser do when providing personal advice to a retail client?

A.Act in the best interests of the client in relation to the advice

B.Maximise the licensee's commission income

C.Recommend only the licensee's in-house products

D.Guarantee a positive investment return

Explanation: Section 961B imposes the best interests duty: the provider must act in the best interests of the client in relation to the advice. The 'safe harbour' steps in s961B(2) set out one way to satisfy that duty.

2An adviser identifies that a client's stated objective conflicts with their best interests. Under the conflicts priority rule in section 961J, the adviser must:

A.Give priority to the client's interests over the interests of the adviser or licensee

B.Give priority to the licensee's interests to protect the business

C.Decline to give any advice at all

D.Refer the client to ASIC for a ruling

Explanation: Section 961J requires that where there is a conflict between the client's interests and those of the provider, licensee or an associate, the provider must give priority to the client's interests when giving the advice.

3Which document must a financial services licensee or authorised representative give a retail client to describe the services offered, fees, and complaints arrangements before providing a financial service?

A.Financial Services Guide (FSG)

B.Product Disclosure Statement (PDS)

C.Statement of Advice (SOA)

D.Target Market Determination (TMD)

Explanation: The Financial Services Guide (FSG) informs the retail client about who is providing the service, the services offered, remuneration and fees, associations, and how to complain. It must be provided as soon as practicable.

4A retail client receives scaled personal advice on a single topic. When must the adviser generally provide a Statement of Advice (SOA)?

A.When the personal advice is given, or as soon as practicable afterwards

B.Only if the client specifically requests it in writing

C.Within 30 days of the financial year end

D.Only when the advice involves a managed investment scheme

Explanation: An SOA must generally be given to a retail client when, or as soon as practicable after, personal advice is provided, and before any related transaction is arranged (subject to limited exceptions such as the Record of Advice rules).

5The ban on conflicted remuneration is primarily aimed at preventing:

A.Benefits that could reasonably be expected to influence the advice given to retail clients

B.All forms of adviser salary

C.Clients paying any fee for advice

D.Licensees charging an annual fee disclosure

Explanation: Conflicted remuneration is a benefit given to a licensee or representative that, because of its nature or circumstances, could reasonably be expected to influence the choice of product recommended or the advice given to retail clients.

6Anti-hawking provisions in the Corporations Act generally prohibit:

A.Offering a financial product to a retail client in the course of, or because of, unsolicited contact

B.Advertising financial products on television

C.Sending an annual statement to existing clients

D.Providing a PDS when a client asks for one

Explanation: The anti-hawking regime prohibits offering a financial product for issue or sale to a retail client as a result of unsolicited contact (such as an unsolicited phone call or meeting), unless an exception applies.

7Under the design and distribution obligations (DDO), an issuer of a financial product to retail clients must:

A.Make a target market determination and take reasonable steps so distribution is consistent with it

B.Guarantee the product will suit every client

C.Provide free personal advice to all consumers

D.Replace the need for a Product Disclosure Statement

Explanation: DDO require issuers and distributors to make and follow a target market determination (TMD) and take reasonable steps so that the product is distributed consistently with the identified target market, supporting consumer-centric design.

8A relevant provider becomes aware they have engaged in conduct that constitutes a 'reportable situation' (significant breach). What is the licensee's obligation?

A.Report it to ASIC within the prescribed time frame

B.Wait until the annual audit to disclose it

C.Report it only if a client complains

D.Report it to the client's accountant

Explanation: Under the reportable situations regime, AFS licensees must lodge a report with ASIC about reportable situations, generally within 30 days of becoming aware that the situation has arisen.

9Which of the following best describes the obligation in section 912A for AFS licensees?

A.To do all things necessary to ensure financial services are provided efficiently, honestly and fairly

B.To guarantee clients against investment loss

C.To recommend only the cheapest product available

D.To avoid giving any personal advice

Explanation: Section 912A imposes general obligations on AFS licensees, including the overarching duty to do all things necessary to ensure financial services covered by the licence are provided efficiently, honestly and fairly.

10An adviser collects a client's tax file number, health details and financial information. Under the Privacy Act 1988 and the Australian Privacy Principles, the adviser must primarily:

A.Collect, use and disclose personal information only for permitted purposes and keep it secure

B.Share the information freely with product providers for marketing

C.Retain all client records permanently regardless of need

D.Publish a client list on the firm's website

Explanation: The Australian Privacy Principles require that personal (and sensitive) information be collected only when necessary, used and disclosed for permitted purposes, kept secure, and accessible to the individual, with extra protections for sensitive information such as health data.

About the Financial Adviser Exam Exam

The Financial Adviser Exam is the national exam that relevant providers must pass to give personal financial advice to retail clients in Australia. ASIC took over administration of the exam from the Financial Adviser Standards and Ethics Authority (FASEA) on 1 January 2022, and the exam is delivered by ACER. It tests three knowledge areas: financial advice regulatory and legal obligations, financial advice construction, and applied ethical and professional reasoning. Since January 2024 the exam is entirely selected-response (multiple choice and true/false) after the written short-answer questions were removed. It runs for 3.5 hours including 15 minutes reading time, is graded to a credit standard at AQF level 7, and costs $1,500 per sitting. Many questions are short client scenarios that ask candidates to apply the best interests duty and the Financial Planners and Advisers Code of Ethics.

Assessment

Three knowledge areas: financial advice regulatory and legal obligations, financial advice construction, and applied ethical and professional reasoning. Around 70 selected-response questions (multiple choice and true/false). Many items are short client scenarios or vignettes.

Time Limit

3.5 hours total: 15 minutes reading time plus 3 hours 15 minutes working time.

Passing Score

Graded to a 'credit' standard (broadly equivalent to around 65% or above) at AQF level 7. Candidates receive a result of pass or unsuccessful, not a numeric score.

Exam Fee

AUD $1,500 for each sitting, payable to ACER at booking. The fee is charged again for each resit. (Australian Securities and Investments Commission (ASIC); delivered by the Australian Council for Educational Research (ACER).)

Financial Adviser Exam Exam Content Outline

35%

Financial advice regulatory and legal obligations

Corporations Act 2001 advice obligations and the AFS licensing framework: the best interests duty and the safe harbour steps, appropriate advice, prioritising the client's interests, conflicted remuneration bans, FSG and Statement of Advice disclosure, anti-hawking, design and distribution obligations, breach reporting, the Privacy Act and AML/CTF requirements.

30%

Financial advice construction

Building suitable personal advice: identifying the client's relevant objectives, financial situation and needs; scoping and scaling advice; conducting a reasonable investigation of financial products; basing advice on the client's circumstances; and communicating clear, appropriate recommendations the client can understand.

35%

Applied ethical and professional reasoning

Applying the Financial Planners and Advisers Code of Ethics, including its five values and Standards 1 to 12, plus broader professional standards. Candidates resolve realistic ethical dilemmas involving conflicts of interest, informed consent, fees, referral arrangements, client best interests and acting with integrity and competence.

How to Pass the Financial Adviser Exam Exam

What You Need to Know

Passing score: Graded to a 'credit' standard (broadly equivalent to around 65% or above) at AQF level 7. Candidates receive a result of pass or unsuccessful, not a numeric score.
Assessment: Three knowledge areas: financial advice regulatory and legal obligations, financial advice construction, and applied ethical and professional reasoning. Around 70 selected-response questions (multiple choice and true/false). Many items are short client scenarios or vignettes.
Time limit: 3.5 hours total: 15 minutes reading time plus 3 hours 15 minutes working time.
Exam fee: AUD $1,500 for each sitting, payable to ACER at booking. The fee is charged again for each resit.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Financial Adviser Exam Study Tips from Top Performers

1Learn the best interests duty safe harbour steps in section 961B in order, then practise applying each step to short client scenarios rather than memorising the wording alone.

2Study the Financial Planners and Advisers Code of Ethics by value and by Standard 1 to 12, and be ready to identify which Standard a scenario breaches; the ethics area carries a large share of questions.

3Practise distinguishing closely related obligations - best interests duty versus appropriate advice versus prioritising the client's interest - because distractors often swap them.

4Use the legislative extracts ACER provides as a reference, but answer first from understanding; flicking to the extract for every item wastes the limited working time.

5For true/false items, watch absolute words such as always, must and never; a single exception in the law usually makes a sweeping statement false.

6Work realistic scenario questions under timed conditions so you get used to extracting the relevant facts quickly and applying the law to the client's circumstances.

Frequently Asked Questions

Who administers the Financial Adviser Exam?

ASIC administers the exam and the Australian Council for Educational Research (ACER) delivers it. ASIC took over administration from the Financial Adviser Standards and Ethics Authority (FASEA) on 1 January 2022.

How many questions are on the exam and how long is it?

The exam has around 70 selected-response questions (recent sittings have run to roughly 80-plus items). It lasts 3.5 hours in total: 15 minutes reading time plus 3 hours and 15 minutes of working time.

Is the exam still partly written short answer?

No. Since January 2024 the exam is entirely selected-response - multiple choice and true/false. The written short-answer questions that were previously included have been removed.

What pass mark do I need?

The exam is graded to a 'credit' standard, broadly equivalent to around 65% or above, at AQF level 7. Candidates receive a result of pass or unsuccessful rather than a numeric score, and unsuccessful candidates get general feedback from ACER.

How much does the Financial Adviser Exam cost?

The exam costs AUD $1,500 for each sitting, payable to ACER when you book during the published registration window. The fee is charged again for each resit.

What does the exam cover?

Three knowledge areas: financial advice regulatory and legal obligations, financial advice construction, and applied ethical and professional reasoning. Many questions are short client scenarios testing the best interests duty and the Financial Planners and Advisers Code of Ethics.