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ASIC Regulatory Guidelines 146 (RG146)

Regulatory Guide 146 (RG146) is a set of minimum guidelines and financial regulation standards under the Corporations Act for anyone wishing to provide financial product advice to retail clients in Australia. Individuals on this pathway in the financial industry are required to adhere to initial and ongoing educational requirements set out by the Australian Securities & Investments Commission (ASIC).

 

Purpose

According to ASIC, as stated in RG146.1, the primary purpose of RG146 is to:

  • Protect consumers of financial advice by ensuring that those who provide the advice are competent to do so.

Furthermore, ASIC emphasise the importance of the secondary purpose, which is to:

  • Help licensees comply with their legal obligations to ensure that they and their representatives are adequately trained and competent to provide the services covered by their Australian Financial Services (AFS) licence. Under the Corporations Act, licensees must adequately train and supervise their representatives, and must themselves be competent.

 

Why is RG146 training necessary?

ASIC has clearly stated the requirement that “all natural persons who provide financial product advice to retail clients must meet the training standards, unless they fall within certain limited exemptions.”

Note: Exemptions apply to “certain persons whose activities are of a limited nature”. For example, it used to apply to accountants, however this has been repealed as of 1 July 2016.

As such, current or potential advisers who will be providing retail financial product advice require an appropriate set of knowledge and skills in order to be able to apply their knowledge in specific practical situations. ASIC has set out a range of training standards that need to be satisfied by advisers which can be referred to on RG146.6 and RG146.7.

Source: Australian Securities and Investments Commission (July 2012), Regulatory Guide 146: Licensing: Training of financial product advisers (PDF), Australian Securities and Investments Commission, p. 4, archived from the original (PDF).

 

How can one become RG146 compliant?

Current and aspiring advisers may meet the training standards set out by ASIC to attain compliance in RG146 by undertaking and completing the relevant training courses with Kaplan Professional.

The courses need to be completed will depend on whether:

  • You are looking to provide advice on Tier 1 on Tier 2 products; and
  • You are providing general or personal advice to retail clients.

 

Tier 1 vs Tier 2

The classification of Tier 1 and Tier 2 products has been set out by ASIC in order to differentiate between simpler and better understood products (Tier 2 products), which are generally subject to less comprehensive training standards.

Kaplan Professional’s Tier 2 RG146 Accreditation Online training program is specifically designed for corporate organisations that require employees to hold accreditation in General and/or Personal Advice in basic deposit and non-cash payment products, and/or general insurance.

 

Tier 1 Advisers

All Tier 1 advisers are required to complete Generic Knowledge. The Generic Knowledge component is only required to be completed once.

It is important to note that Kaplan Professional cannot issue your academic record on completion of the General Advice or Personal Advice subject if Generic Knowledge has not been attained.

The Generic Knowledge entry requirement may be met by evidence of equivalent competency through mutual recognition (MR), recognition of prior learning (RPL), or recognition of current competency (RCC).

 

Skills

Skills components of subjects are only required to be completed if you are wanting to provide Tier 1 personal advice. An adviser providing general advice does not need to complete the Skills component of the subject(s).

 

Tier 2 Advisers

Click here for specific information on Kaplan Professional’s Tier 2 RG146 Accreditation online training program.

  • ASIC Regulatory Guidelines 146 (RG146)