RG146 Compliance License and Training Standards

What is RG146 compliance license?

Regulatory Guide 146, formerly known as Policy Statement 146 is an Australian Financial regulation issued by Australian Securities and Investment Commission regarding the minimal training standards that are required to sell any financial product.

Becoming a financial advisor or planner is not the job for someone who is not acquainted with the right education and skills. Australia only permits well-trained and knowledgeable person to take up a responsible job as such. The knowledge and skill requirements vary depending on for which field the adviser is offering his/her advice. While, a financial planner/advisor who only advices on self-made super fund (SMSFs) may require RG146 compliant license Sydney in superannuation, and financial planning; a financial planner who provides complete financial planning service to clients would require being yielding in all specialist knowledge areas. In any circumstance, RG146 compliance is imperative if one desires to work as a financial planner.

Australian Securities and Investments Commission (ASIC) stresses on Regulatory Guide 146 licensing as best practice in order to become and practice as a financial planner. Thus, it is essential for a seeker of career in financial services to train and meet the relevant training standards of services by completing relevant courses. ASIC has classified a range of skill prerequisites that advisers will need to accomplish.

What are training standards of ASIC?

Training standards set by ASIC for selling financial services and products include the knowledge and skill requirement that must be gratified, depending on the education level, which can be either Tier 1 or Tier 2. It is important to meet these standards before the advisers give any advice.

TIER 1

The Tier 1 education level is mostly equal to the ‘Diploma’ level under the Australian Qualifications Framework. It is associated to financiers who are seeking to offer Personal financial advice. This means, if a person is giving an advice bearing in mind the investor’s personal financial position, he/she is ought to qualify Tier 1 education level. These advices will be provided based on the investor’s personal financial position, financial aims, and needs. A tier 1 adviser will require being skilled and knowledgeable at specific areas of finances like life insurance, superannuation, securities, derivatives and other collective investment schemes.

TIER 2

Tier 2 education level is an equivalent to ‘Certificate III’ level under the Australian Qualifications Framework. It is associated with persons who are aspiring to offer collective financial advices to investors. Thus, it is for General financial advisers. This will include talking about the benefits of a particular financial product, without any personal reference to any client. Marketing through media and collective presentations are examples of tier 2 advices.

Tier 1 will require two examinations, while tier 2 will only require one examination.

Courses that are available

Several offers for education level 1 and 2 are available.

1. Generic knowledge

2. Securities

3. Derivatives

4. Managed investments

5. Superannuation

6. Self-managed super fund (SMSF)

7. General Insurance

8. Life insurance

9. Skills

Many providers of RG146 compliance training offer multiple courses across Australia. However, all providers must be registered with ASIC and have to meet specific criteria.