The regulator has outlined its intentions for increased adviser training standards past the current RG146 minimum requirements, with two phased increases to the current standards proposed.
The Australian Securities and Investments Commission (ASIC) today released consultation paper 212 (CP212), which proposes to retain the current training standards in RG146 as ‘base level’ standards, and to introduce two further regimes of training.
These are proposed to come into effect in 2015 and 2019 and will increase generic knowledge requirements, specialist knowledge requirements for financial planning, securities and superannuation, skill requirements for personal advice and educational level requirements.
ASIC has designated current requirements as ‘Regime A’ with ‘Regime B’ to commence on 1 January 2015 and ‘Regime C’ to come into play on 1 January 2019.
ASIC is proposing to make all generic knowledge requirements for Tier 1 advisers mandatory. Under RG146 Tier 2 products are deemed to be simpler and better understood, and therefore subject to lighter training standards and a lower educational level.
There is a need to raise the educational level of advisers providing personal advice on Tier 1 products from AQF Level 5 (equivalent to a Diploma) to AQF Level 6 (equivalent to an Advanced Diploma), ASIC stated.
ASIC’s previous CP153 consultation proposed a number of improvements including a national exam and knowledge update review.
“It is important to note that if a national examination is implemented, it may replace any obligation to do a training course approved in writing for advisers of Tier 1 products,” ASIC stated.
‘Tier 1 products’ refers to all financial products outside of Tier 2, which includes general insurance products (except for personal sickness and accident), consumer credit insurance, basic deposit products, non-cash payment products and first home saver deposit accounts.
ASIC's consultation paper can be viewed here.
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