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