Tier 1 RG 146 Margin Lending
Our online course describes the knowledge and skills required to analyse client needs and to deal ethically and professionally in Margin Lending products. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.
To be RG146 compliant to provide general advice in Tier 1 RG 146 Margin Lending, you must also successfully complete Generic Knowledge.
RG146 Margin Lending can be studied as a short industry course under Responsible Manager Nomination Option 3, if this learning is specifically relevant to the sector or products the responsible manager’s role relates to (RG 105.69).
What is Margin Lending
Margin lending is the term for is a loan that allows investors to borrow cash against the value of listed shares or units in managed funds. Borrowed money magnifies both capital gains and capital losses. The higher the proportion of the value of the securities that is borrowed, the higher the risk is to investors.
Characteristics of margin loans
Features of margin loans include:
- The margin loan can generally be used to buy shares or managed funds.
- The security for the margin loan is the total investments purchased with both the investor’s money plus the borrowed money.
- Borrowers can generally specify a fixed or variable rate of interest.
- Margin loans are almost always interest only loans
- Investors may be able to take advantage of dollar cost averaging with some gearing products by participating in regular investing plan products.
- What margin lending is and how it works
- Overview of the Australian margin lending market
- Characteristics of margin loans and who they might be suitable for
- How prominent cases of misconduct led to regulation and licensing of margin lending.
What you will learn
- The concept of gearing or leverage
- Valuation ratios and other margin lending features
- Benefits and risks of margin lending
- Operating margin lending accounts and margin calls
- Taxation of securities and managed investments
- Responsible lending, adviser conduct, disclosure and other regulatory matters.
Who is this course for?
- Participants who require RG146 compliance to provide general advice on regulated Margin Lending products (when completed with Generic Knowledge)
- Representatives who advise wholesale clients or organisations seeking product-specific team training
- Refresher training and/or CPD for existing RG146 compliant dealers and brokers
- Participants seeking to extend their advisory range to include Margin Lending
- Participants needing to complete a relevant short industry course under Responsible Manager Nomination Option 3
Recognition of Prior Learning
On successful completion of RG 146 Margin Lending participants will be awarded a Certificate of Completion.
On successful completion of Generic Knowledge and Margin Lending, participants will be awarded a Certificate of Attainment confirming that they are RG 146 compliant to provide general advice in Margin Lending.