Exam results shock
17% PASS, APPEALS PROCESS NOW UNDER WAY
Students and universities have expressed their concern and dismay after only a small percentage of students passed the Financial Planning Institute of Southern Africa’s (FPI’s) Professional Competency Examination (PCE).
The PCE is one of the final hurdles financial advisors need to clear to obtain the internationally-recognised Certified Financial Planner (CFP) designation.
Students need 60% to be regarded “competent” – or pass the exam – but only 9% of the 390 students who wrote the February exam got 60% or more; 17% of students passed after condonation.
There has been a significant drive to professionalise the financial planning industry in investors’ interest and, while higher barriers to entry for advisors should be welcomed, the results raise questions about whether all stakeholders are on the same page.
Students obtain a post-graduate diploma in financial planning before writing the PCE, while many also have financial planning experience.
An engagement and appeals process is under way.
University of Stellenbosch Business School’s Lee-Ann Steenkamp is “concerned and dismayed” about the low pass rate. “Although this is a FPI exam and the matter falls under their jurisdiction, I do believe this requires a collective response from academia, industry and the FPI.”
An anonymous student said there is significant unhappiness about the pass rate. The student, who obtained a 70%-plus mark for a postgraduate diploma, got just over 40% for the PCE, despite being well-prepared and not feeling that the exam was particularly difficult.
Another student, who failed the exam before, and who improved their mark to about 50% in February, said there seemed to be something wrong with the system.
The student, who has years of experience in the financial services industry and who passed the postgraduate diploma with an average of almost 70% in 2017, has decided not to write the PCE again, saying there’s nothing more they could do to improve.
Lelané Bezuidenhout, CFP and FPI head of certification, said the pass rate was lower than usual. Between 2014 and 2017 the average pass rate was 51%.
“According to official feedback from our independent exam assessors and moderators, it is evident many candidates who sat this exam battled to translate their acquired knowledge to the real world financial planning scenarios that the FPI PCE tests.”
Since the historical average pass rate was 51%, the FPI isn’t of the view that February’s low pass rate was a result of deficiencies in university programmes.
“The education providers have been, and continue to be, invaluable in preparing the candidates for professional membership.”
Bezuidenhout said the FPI Professional Competency Examination Policy provides guidelines on how to address unhappiness; candidates have a right to request a remark or lodge an appeal and can request viewing of their exam script with the exam paper and suggested answers.