Standard Set B examination
Reminder
Financial advisers who have booked a Standard Set B examination are reminded to bring the same photographic identification that they used when they registered with ETITO to the examination.
The valid forms of identification are:
- NZ drivers licence
- Passport
Details of the proof of identity bought to the examination will be checked against the information provided by you on registration with ETITO. Photocopies of these documents will not be accepted.
If advisers cannot provide one of these two types of identification they will need to complete an alternative ID form and present the completed form at the examination. The form can be downloaded from the exam information page in advisers ETITO account.
If you have any questions please call the ETITO helpdesk on 04 931 0007.
Where can I find the unit standard for Standard Set B and a technical explanation of the different parts of a unit standard?
Click here for the unit standard
Click here for a technical explanation of the different parts of a unit standard
On Thursday 12 August 2010 [Updated September 2011] ETITO issued a guidance note for Standard Set B.
Click here to view the Standard Set B assessment guidance note.
This note is intended to assist financial advisers in their preparation for sitting the Standard Set B examination.
What is the structure of the Standard Set B examination?
The Standard Set B examination is 60 minutes long. It contains 30 multi-choice and multi-select questions which candidates answer online at supervised centres throughout the country. The questions are randomly selected from a larger pool to ensure examinations vary between candidates and examination re-sits can be accommodated.
For multiple choice questions, candidates need to select the correct answer from a range of options. For multi-select questions, candidates need to select all correct options within that question for their answer to be correct. The questions are presented on the computer screen in three blocks of 10 questions. Note: these question blocks are not the sections candidates are required to pass but appear as blocks to make the examination easier for candidates to navigate.
What do I need to get to pass the examination?
To pass the examination candidates must achieve:
- 70% as an overall pass mark
and
- a preset pass mark for each section/topic area of the examination. Section/topic area pass marks will vary. Some will require 50% to pass and others a higher pass mark e.g. 60%. In the specific topic areas, the requirement varies depending on the level of knowledge required in that topic area. More information is available on the table provided.
Candidates are required to pass both the examination overall and each section because of the nature of standards-based assessment. The New Zealand Qualifications Authority [NZQA] requires there is evidence provided across the whole unit standard, and that there is enough evidence to show that the person being assessed is able to repeat the activity; that is, they are able to perform what’s required, consistently.
The requirement to pass the individual sections is to ensure that there is evidence across the whole of the unit standard, while the overall pass mark of 70% is to show that the adviser has the ability to perform an activity correctly more than once.
The examination sections that require a pass mark are based on the four elements set out in the unit standard. The elements have been divided into critical topic areas. It is these critical topic areas that form the sections requiring pass marks. To pass the Standard Set B examination candidates must meet the following criteria:
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To demonstrate depth of understanding and the ability to repeat performance across unit standard 26360
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21/30 [70%]
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AND
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To demonstrate understanding across unit standard 26360 advisers are required to achieve at least
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Element from Unit Standard 26360
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Critical topic areas that form sections
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Minimum correct answers
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1
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Participants and terms in the legislative framework for financial advisers
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Terms used, function of the Financial Markets Authority [FMA], purpose of Financial Service Providers Register [FSPR]
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3 out of 5 questions answered correctly
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Types of adviser and the services they can provide
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1 out of 2
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2
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Consumer legislation, and disclosure and conduct obligations of financial advisers
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Disclosure obligations
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1 out of 2
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Conduct obligations
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1 out of 2
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Fair Trading Act
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1 out of 2
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Consumer Guarantees Act
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1 out of 2
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Trustee Act
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1 out of 2
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3
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The Code of Professional Conduct for Authorised Financial Advisers [AFAs]
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Standards of ethical behaviour, standards of client care, standards of competence, knowledge and skill and continuing professional training
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5 out of 7
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4
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Participant roles and responsibilities for complaint resolution and consequences for financial advisers
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Participant roles and responsibilities, offences and penalties, inspection powers of the Registrar
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4 out of 6
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The three additional answers required to meet the overall pass requirement are taken from any section
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The questions in the examination cover all of the performance criteria which you can find detailed in the unit standard. The unit standard is available here
The performance criteria will be assessed either in standalone topics or across several areas where an overall level of competency is more relevant.
When will I get my examination results?
Examination results will generally be available within 24 hours after candidates have completed their examination session. Results will not be available at the examination venue as the session is not considered completed until all those sitting have completed their examination, and the superviser has formally reported on the session.
You will be able to access your results through https://fsportal.etito.co.nz/
You will see your results by logging in to your ETITO account and selecting ‘My results’ from the menu.
What if I don’t pass?
You will need to book and pay for a resit. If you don’t pass on your second attempt, you can try once more, then you will not be able to sit again for three months. It is recommended that advisers use this time as a training period. After the three months you will then have another three opportunities to pass.
If I don’t pass do I need to re-sit the whole examination?
Yes. You will need to re-sit and pass the examination as a whole rather than just sitting the section[s] you failed.
The re-sit will contain 30 different questions from the question bank, rather than focussing solely on the section[s] you didn’t pass, ensuring the repeatability requirements are met.
As the reasons a candidate won’t have passed will vary, each candidate is given feedback on the questions they answered incorrectly to help their preparation for a re-sit.
Where examinations are based on regulation, it is not uncommon for candidates to be required to re-sit the examination in its entirety.
What can I do to prepare for my re-sit?
Feedback will be provided to candidates who haven’t passed the examination. It will provide information on the questions answered incorrectly and the performance criteria they relate to. The feedback can be accessed by clicking on the ‘Examination feedback’ button. An example of examination feedback is shown below:
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This feedback lists the areas for which you answered questions incorrectly during your examination.
The US number refers to the unit standard, and the PC is the relevant performance criteria.
For more information and definitions of the unit standard go to www.afacompetence.org.nz.
Examination Feedback
1. US26360 PC2.1 AFA
2. US26360 PC4.3
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1. US26360 PC2.1 AFA
Shows that a question related to performance criteria 2.1 was answered incorrectly – specifically the range statement item related to AFA
2. US26360 PC4.3
Shows that a question related to performance criteria 4.3 was answered incorrectly – there is no range statement so no further detail [also applies if there is only one range statement item]
Advisers should use this feedback as a guide to study in preparation for a re-sit. Advisers may choose to undertake formal study through a training provider, or review their own material.
Will it cost the same amount as my first sitting?
Yes. The fee applied to a re-sit is the same as the initial fee because the costs incurred in re-sitting the examination are the same.
Can I appeal the result of my Standard Set B examination?
Yes. Candidates can appeal the result of their examination if they are not satisfied with the outcome. The appeal will be considered by an adjudicator appointed by ETITO. The adjudicators have recognised expertise and they have sat and passed the Standard Set B examination, however they were not involved in writing the examination questions.
An appeal will focus on the examination questions, not the structure. Adjudicators will use set criteria to review each question the candidate answered incorrectly and they will also consider any additional comments the candidate has made about specific questions.
Appeal applications must be received by ETITO no later than one calendar month after the date of sitting. To initiate the appeal process candidates should call the FAA Helpdesk [04 931 0007]. There is a fee for an examination appeal of $150+GST. If the appeal is successful the fee will be refunded.
Appeal outcomes will be communicated to the appellant at the earliest opportunity by telephone and by formal written response.
Can I get my percentage mark for the examination?
Candidates are not able to find out their percentage mark for a variety of reasons, most importantly because it is not the most helpful in telling them what they need to know. With standards-based assessment the candidate either gets the unit standard in its entirety, or they don’t - the use of percentages is an underpinning tool, not a result in itself.
This is why the result for the Standard Set B examination is either ‘passed’, or ‘not yet passed’. The New Zealand Qualifications Authority [NZQA] requires there is evidence provided across the whole unit standard, and that there is enough evidence to show that the person being assessed is able to repeat the activity, that is, be able to perform what’s required, consistently.
Where the result is ‘not yet passed’ the candidate is given feedback for every question answered incorrectly. This feedback refers to the unit standard, as it is the principles embedded in the standard that are being assessed and so it is the relevant reference point for further study.
Where the result is ‘passed’, the candidate has shown the required range across the standard and repeatability, so therefore they gain the standard and do not need to do further study in this topic.
Why can’t I have the answers to the questions I got wrong?
ETITO cannot provide the answers to the questions answered incorrectly as to do so would compromise the integrity of the examination question bank by putting the questions and their answers in the public domain.
By providing feedback ETITO is balancing the needs of advisers in successfully passing the examination and the integrity and robustness of the examination overall.
What happens to those comments I provided during / at the end of the examination?
These comments are not used during marking of the examination but they used to improve questions when the questions are reviewed. The questions are reviewed on a regular cycle based on the number of times the questions have been used in an examination, percentage of people answering correctly, and comments received.
Where else can I find information about the regulatory framework?
For further clarity about regulation itself you can contact the Financial Markets Authority, or you may wish to seek your own legal advice.
If you are looking to engage in training a list of registered and accredited training providers can be found here
ETITO is unable to provide an interpretation of the laws applying to Standard Set B. Our role is to develop the standards and qualifications and operate the centrally-administered assessment system.
How was the examination developed?
ETITO is working with an organisation with a proven nationwide network of examination technology with processes for validating identity. The company also has a track record of developing and administering electronic examinations for a regulatory purpose.
The questions and answers were written by people from a range of sectors in the industry – financial advisers like you. Most were nominated by their industry association as leaders in their field. They took part in training for question writing. Each was assigned particular areas of the unit standard 26360 to write questions for.
After being written, the questions were reviewed by two other financial adviser subject matter experts from different specialities, then proofread and put through ETITO’s national moderation requirements. The questions were then tested in a mock examination by a different group of subject matter experts not involved in their development. At any stage in this robust process, questions could be recommended for further work – then once the issue raised was resolved, continue through to the next stage.
What was involved in the testing of the Standard Set B examination?
ETITO formally tested the examination with a pool of 22 financial advisers from across a range of specialities including investment, insurance and mortgage advising. The pool included advisers from large corporate organisations, dealer groups and self-employed advisers. These advisers all sat the examination twice, in an examination centre under supervised examination conditions.
The results of the examination as a whole, the results of individual questions, and the feedback from those who sat the examination all provided information for ETITO. This information was used to gauge whether the questions performed as expected in the examination setting, to ensure the marking was working appropriately, and to make adjustments where necessary.
Why not have a longer examination?
This would not change the pass requirements for the examination. By adding more questions it would have meant a longer examination that would have been more expensive.
Will the examination be monitored to check it is working how it should?
Yes. ETITO will monitor the examination to ensure that the questions and the marking remain fair and appropriate.
ETITO believes the examination is a fair assessment tool, and it has been moderated by one of the National External Moderators whose role it is to ensure national consistency in assessment against financial services unit standards. Moderation considers such issues as fa
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