RG146 Compliance faqs

What is RG146 compliance?

Regulatory Guide 146 Licensing: Training of financial product advisers prescribes the knowledge and skills financial services professionals who give financial product advice to retail investors require. It aligns with provisions in Chapter 7 of the Corporations Act – particularly s766B – and outlines how ASIC regulates AFS Licensees’ compliance with their advice conduct obligations.

Do FEP’s courses comply with ASIC’s requirements?

ASIC doesn’t accredit courses. We are a Registered Training Organisation and an ASIC Authorised Assessor, so you can be assured that FEP’s courses comply  with ASIC’s requirements (RG 146.87).

What are FEP’s study methods?
You can study most FEP courses fully online via our learning portal, FEPOnline. Giving students and learning managers 24/7 access, it provides you with online learning resources, online assessment and insightful tracking and reporting.

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

Who does RG146 compliance apply to?

RG146 continues to apply for certain groups, namely licensees and advisers who:

  • Provide general advice
  • Provide personal advice to retail clients in Insurance Broking, General Insurance and/or in Deposit Products & Non-Cash Payment Products only
  • Are already listed on the Financial Advisers Register and wish to add an additional RG146 specialist knowledge area to their existing credentials.

What are the Tier 1 RG146 specialist knowledge areas?

Tier 1 products include Securities, Managed investment, Derivatives, Foreign Exchange, Superannuation, Life Insurance, and Tier 1 Insurance Broking.

What are the training standards?

The training standards are sets of knowledge and (in some cases) skill requirements that must be satisfied by advisers before they give advice.

Knowledge and skill requirements vary depending on:

  • whether the adviser gives general or personal advice; and
  • what products the adviser gives advice on. Some products are classified as being Tier 1, while others are Tier 2

The knowledge requirements are set out in Appendix A of RG146 and the skill requirements are set out Appendix B.

What is the difference with Tier 1 General Insurance (Personal Advice) and Tier 1 Insurance Broking (Personal Advice)

Tier 1 RG146 Insurance Broking includes all the content covered in Tier 1 RG146 General Insurance PLUS extra content and competencies specific to being a broker.

What knowledge areas should I gain compliance in?

That would depend on your role and what financial products you provide advice in. You must be accredited to provide advice in all knowledge areas you intend to advise on. Consult your licensee if you are unsure or would like to discuss with them your desire to advise on additional knowledge areas.

Authorisation is the responsibility of your Australian Financial Services Licensee.

Do you recognise prior learning?

If you are adding a specialist knowledge area to your current authorisations, we may be able to recognise your previous study of Generic Knowledge and Skills. We can only recognise prior learning from qualifications obtained from a Registered Training Organisation.

You’re welcome to send transcripts showing subjects and units of competency you have completed to admin@financialeducation.com.au so we can assess your eligibility.

Who is regulating advisers now?

FASEA was established in 2017 to set the education, training and ethical standards of financial advisers who provide personal advice on relevant financial products to retail clients. On 13 June 2017, FASEA was declared as the standards body under the Corporations Act.

ASIC continued to have oversight of general advice, personal advice to wholesale clients, and advisers providing advice in General Insurance (Tier 1 and Tier 2) and deposit products and non-cash payment products only.

Note that in mid-December 2020, the Government announced a proposal to disband FASEA. Associated changes will see:

  • FASEA’s standards-making function reassigned to Treasury
  • ASIC’s Financial Services and Credit Panel (FSCP) become the financial advice sector’s long-awaited single disciplinary body. The FSCP’s expanded mandate will include administering the adviser examination and monitoring compliance with the Code of Ethics.

Legislation implementing these reforms was intended to be introduced into Parliament in the first half of 2021.

I’m an existing adviser. So much change has happened. Can I still add to my RG146 authorisations?

Yes. However, you will need to complete your additional authorisations by 31 December 2021.

However, this excludes Superannuation, SMSF and Margin Lending. Units of Competency for these knowledge areas have been deleted from the Financial Services training package and are no longer available to study.

What is the difference between general and personal advice?

Personal advice includes circumstances where:

  1. an adviser has considered one or more of a client’s objectives, financial situation and needs (other than for the purposes of complying with AML/CTF requirements); or
  2. a reasonable person might expect the adviser to have considered one or more of those matters.

General advice is financial product advice that is not personal advice. There are some occasions when obtaining information from a customer does not constitute giving advice, e.g. requesting customer details to calculate the premium for an insurance quote.

ASIC illustrates the difference between factual information, general advice and personal advice in Regulatory Guide 36 Licensing: Financial product advice and dealing (RG 36)

I am looking for a career in financial services. Where can I start?

Roles within financial services are varied. FEP is an education provider, so cannot guide you on a career path. You could start with chatting to an employer or prospective employer to determine what you would need to do. You could also check the following

Once you know what education or qualifications you need, we will be happy to help.