ASIC has released Consultation Paper 212 Licensing: Training of financial product advisers – Updates to RG 146 (CP 212) which proposes increased training standards for people who provide financial product advice.
Regulatory Guide 146 Licensing: Training of financial product advisers (RG 146) currently sets out the minimum knowledge requirements, skill requirements (for some financial product advisers) and educational level requirements for advisers. A proposed amended RG 146 is annexed to the Consultation Paper.
CP 212 proposes increases in the:
- generic knowledge requirements
- specialist knowledge requirements for financial planning, securities and superannuation
- skill requirements for personal advice, and
- educational level requirements.
ASIC is proposing three training standards regimes:
(a) the first regime (proposed to be called ‘Regime A’) is the regime that currently applies to advisers (in current RG 146)—it would continue to apply to advisers who currently meet these training standards and who do not want to change their advice activities;
(b) the second regime (Regime B) is proposed to be introduced for:
(i) new advisers who start providing financial product advice on or after 1 January 2015 and before 1 January 2019; and
(ii) advisers who completed their initial training under the current regime (i.e. Regime A) who, between 1 January 2015 and 31 December 2018, decide to change their advice activities; and
(c) the third regime (Regime C) is proposed to be introduced for:
(i) new advisers who start providing financial product advice on or after 1 January 2019; and
(ii) advisers who completed their initial training under a previous regime(s) (i.e. Regime A and/or B) who, on or after 1 January 2019, decide to change their advice activities.
ASIC has not proposed substantive changes to the specialist knowledge requirements for derivatives, managed investments, insurance (general, life and broking), deposit products and non-cash payment products, foreign exchange, FHSAs, margin lending facilities or regulated emissions units.
CP 212 is also seeking feedback on the appropriate training standards for personal sickness and accident insurance and consumer credit insurance.
