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.
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 I need a Diploma to gain RG146 compliance?
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.
Do advisers require CPD?
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.