RG146 Compliance

What is RG146?

Anyone giving financial product advice under an Australian Financial Services Licence (AFSL) must satisfy ASIC’s training standards which are explained in Regulatory Guide 146 Licensing: Training of financial product advisers (RG146).

The training standards comprise both knowledge and skills. The requirements vary depending on the adviser’s activities. The knowledge requirements vary depending on the areas in which the adviser is giving advice e.g. securities, managed investments, superannuation etc. The skills requirements vary depending on whether the adviser is giving personal advice (requires skills) or general advice (does not require skills).

New advisers meet the relevant training standards by satisfactorily completing relevant courses.

Experienced advisers can demonstrate their competence through individual assessment by an ASIC authorised assessor.

DO I NEED A DIPLOMA TO GAIN RG146 COMPLIANCE?

No.

ASIC in RG146.59 states “We are not prescribing that advisers should necessarily undertake a formal diploma course. The reference to this qualification in this regulatory guide is for comparative purposes only, as a guide for licensees, training providers and authorised assessors on the level of the required content of the course.”

Tier 1 RG 146 licensing compliance is at diploma level.

How do I become RG146 compliant?

RG146 compliance is potentially a 3 part process, depending on whether:

  • you are giving advice on Tier 1 or Tier 2 products and
  • you are giving general or personal advice to retail clients.

Generic Knowledge

Only required for Tier 1 Advisers.
ASIC does not require advisers on Tier 2 products to meet the generic knowledge requirements.

Skills

Only required if the Adviser is giving personal advice. An adviser giving general advice does not need to undertake skills.

What is the difference between Tier 1 and Tier 2 products?

ASIC has divided financial products into Tier 1 and Tier 2. Tier 2 products are generally simpler and better understood than Tier 1 products and therefore are subject to lighter training standards. Advisers on Tier 1 products are required to complete Generic Knowledge. However, ASIC does not require advisers on Tier 2 products to meet the generic knowledge requirements. Tier 2 products don’t have an investment component where the return is subject to market fluctuations. Hence, training on the economic environment as part of generic knowledge training is less relevant to advisers on Tier 2 products.

Who needs to complete the Skills requirements?

Advisers providing personal financial advice to retail clients need appropriate skills to be able to apply their knowledge in practical situations. These skills vary according to the activities undertaken. ASIC has identified a range of skill requirements for advisers providing personal advice.

Do advisers require CPD?

In a word, yes.

ASIC requires that licensees implement policies and procedures to ensure that they and their advisers undertake continuing training to maintain and update the knowledge and skills that are appropriate for their activities. All advisers should complete a minimum of 20 CPD hours each year.

We offer an innovative CPD solution – cpdevolve specifically designed to assist advisers in meeting this obligation.

Is the Chartered Financial Analyst (CFA ®) program acceptable for RG146 compliance?

Yes, on completion of our CFA Gap Program. This subject is listed on the ASIC Training Register and meets RG146 requirements.

The subject has been specifically designed for those who have successfully completed, as a minimum,  Level 1 of the CFA ® program. The course covers those areas of knowledge required by ASIC’s RG146 that are not covered by the CFA® program. On successful completion of the CFA Gap Program you will be RG146 compliant to give general advice on securities, derivatives, managed investments and foreign exchange. If you wish to give personal advice, you are required to complete Skills. See CFA Gap Program

We offer the following RG146 courses and services

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