Professional standards for financial advisers

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Who is FASEA?
What are the Professional Standards?
Guidance on Education Pathways for all Advisers
What remains with ASIC
What is a financial adviser?
What is the Financial Advisers Register?
Proposed changes to comply: continuing professional development?

Who is FASEA?

The Financial Adviser Standards and Ethics Authority (FASEA) was established in April 2017 to set the education, training and ethical standards of licensed financial advisers in Australia. In June 2017, FASEA was declared as the standards body under the Corporations Act 2001.

What are the Professional Standards?

The professional standards are the new adviser education guidelines being brought in by FASEA. The Professional Standards are in relation to personal advice on Tier 1 financial products (excluding general insurance and deposit products). Tier 2 financial products is not covered by the new standards. General advice only on Tier 1 products are not covered by the new standards.

Guidance on Education Pathways for all Advisers

Due to the new adviser education guidelines being brought in by FASEA, advisers are encouraged to gain RG 146 compliance and be on the Financial Adviser Register (FAR) prior to or by 1 January 2019. This will allow advisers to be eligible for the most favourable transition conditions. If not, you may then be subject to more onerous education standards.

If you are looking to become RG 146 compliant to give personal advice, we strongly suggest undertaking your study before the end of 2018, prior to the new standards taking effect. If you would like to give personal advice on RG 146 knowledge areas you need to gain RG 146 compliance and be on the Financial Advisers Register (FAR) by 1 January 2019. You will then be recognised as an ‘existing provider’ and will have until 1 January 2021 to pass the FASEA exam and 1 January 2024 to complete an approved qualification.

If you complete study of an RG 146 specialist knowledge area in 2019, you may only be able to give general advice in that area.

What remains with ASIC

General Insurance and Deposit Products (both Tier 1 and Tier 2)
Personal advice to wholesale clients
General advice only on Tier 1 products

What is a financial adviser?

A financial adviser is an individual authorised to provide personal advice in relation to relevant financial products to retail clients. Financial advisers are recorded on the Financial Advisers Register.

What is the Financial Advisers Register?

The Financial Advisers Register is a register of individuals who are authorised to provide personal advice to retail clients on investments, superannuation (including SMSFs) and life insurance (i.e. ‘relevant financial products’). It contains details of, for example, where the adviser has worked, their qualifications, training, memberships of professional bodies and what products they can advise on.
Please note: It is up to your licensee to ensure that they have updated their records on the FAR to ensure that you and other representatives are properly recorded.

How do I know if I am on the FAR?

You can find out here.

Proposed changes to comply: continuing professional development?

The proposed approach to CPD aims to ensure that all providers participate in development programs and activities that ensure they maintain and extend their professional capabilities, knowledge and skills including keeping up to date with all regulatory, technical and other developments relevant to professional practice. The Standards Authority proposes that advisers be responsible for maintaining a continuous accurate record of their CPD activities, which must be provided to the licensee in order to maintain compliance with the CPD year requirement.

Find out more

ASIC Professional standards for financial advisers – reforms
FASEA Proposed Guidance on Education Pathways for All Advisers
ASICs Financial Advisers Register

Fill your RG 146 Gaps

Choose to study your required specialist knowledge without having to do an entire diploma.

How do I become RG 146 compliant?