RG146 Compliance

RG146 Compliance

What is RG 146 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).

The RG 146 training standards comprise both knowledge and skills. The requirements vary depending on the adviser’s activities. The knowledge requirements vary depending on the RG 146 areas in which the adviser is giving advice e.g. securities, managed investments, superannuation etc. The skills requirements vary depending on whether the adviser is giving personal advice (requires skills) or general advice (does not require skills).

New advisers meet the relevant RG 146 compliance training standards by satisfactorily completing relevant courses.

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

How do I become RG146 compliant?

RG146 compliance is potentially a 3 part process, depending on whether:

  • you are giving advice on Tier 1 or Tier 2 products and
  • you are giving general or personal advice to retail clients.

We offer an online, modular approach, allowing you to study and complete one RG 146 specialist knowledge area at a time.

RG 146 Generic Knowledge

Only required for Tier 1 Advisers. ASIC does not require advisers on Tier 2 products to meet the generic knowledge requirements.

RG 146 Compliance

RG 146 Skills (Personal Advice)

Only required if the Adviser is giving personal advice. An adviser giving general advice does not need to undertake RG146 skills.

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 31 December 2018.  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. You can view more on the FASEA website.

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.

What students say about our courses

At course completion we request feedback to see how we are going. The 2018 RG146 courses are receiving fabulous reviews.

85%

Valued the high quality course content

87%

Found the course was highly relevant to their current role

86%

Are satisfied with the support services provided by FEP

91%

Would recommend FEP to a colleague

Study in your own time and the quality of the course was excellent – Paul Ryan, Paul Ryan and Associates

Easy to access and the course is suitable for meeting AFSL requirementsBeryl Notias, Baptist Financial Services Australia Ltd

Very easy to enrol and do the courses without delay! 24 hr access its brilliant! Keep up the awesome work! David Momirovic, VDM & Thorn Pty Ltd

I enjoyed the course, and would highly recommend your company.

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?

No.

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.