If you have any questions regarding RG146 compliance training requirements, please do not hesitate to call one of our friendly Education Advisers on 1300 883 346.
1. Who needs RG146/PS146 compliance training?
The Australian Securities and Investments Commission (ASIC) regulates the provision of advice to retail clients in Australia. As part of this policy, ASIC enforces a minimum education standard (KNOWLEDGE and SKILLS) all Financial Advisers/Planners must have in order to provide advice. This is set out in Regulatory Guide 146 (RG146), which was previously known as Policy Statement (PS146). Specifically, ASIC requires that:
“RG 146.4 All natural persons who provide financial product advice to retail clients must meet the training standards….“
In addition:
RG 146.6 The training standards are sets of knowledge and (in some cases) skill requirements that must be satisfied, at either the Tier 1 or Tier 2 education level, by advisers before they give advice. The Tier 1 education level is broadly equivalent to the ‘Diploma’ level under the Australian Qualifications Framework…and relates to the provision of personal and general advice in specific knowledge areas such as superannuation, insurance, managed investments, securities, derivatives, etc
Table: Tier 1 and Tier 2 products
| Financial Products | |
| Tier 1 | All financial products except those listed under Tier 2 |
| Tier 2 | • General insurance products except for personal sickness and accident (as defined in reg 7.1.14) Note: Travel insurance products are included in Tier 2, even where the product covers losses arising due to sickness or accident while traveling • Consumer credit insurance (as defined in reg 7.1.15)• Note: Consumer credit insurance products are included in Tier 2, even where the product covers consumer credit liabilities that cannot be paid due to sickness or accident • Basic deposit products • Non-cash payment products |
The specific minimum education requirements for anyone seeking to become a Financial Planner/Adviser are:
| Knowledge and skills needed | |
| Financial planner | An adviser providing financial planning advice that requires a detailed client needs analysis should undertake approved training courses that address the elements set out under our requirements for: • generic knowledge; • specialist knowledge under the financial planning categories – for more information, refer to the RG146 Document and see Table A2.1 in Appendix A and superannuation (see Table A2.5); and Note: They will also need to complete courses covering insurance (see Table A2.6), managed investments (see Table A2.4) and securities markets (see Table A2.2) if they advise on these products. • appropriate skills. |
An individual cannot provide advice to retail clients in any specialist knowledge area and/or in relation to any product if they do not meet the minimum training standards as set out in RG146.
2. What is meant by ‘providing advice to retail clients’?
Financial Product Advice is “a recommendation or a statement of opinion, or a report of either of those things, that is intended to influence a person or persons in making a decision (buy, sell or hold) in relation to a particular financial product or class of financial products, or would reasonably be regarded as being intended to have such an influence.”
Advice provided to a retail client can be:
• personal advice or
• general advice.
Personal advice is “financial product advice that is given or directed to a person (including by electronic means) in circumstances where:
• the provider of the advice has considered one or more of the person’s objectives, financial situation and needs; or
• a reasonable person might expect the provider to have considered one or more of those matters.
General advice is “financial product advice that is not personal advice”. That is, it does NOT take in to account one or more of the person’s objectives, financial situation and needs. General advice is typically communicated in documentation, seminar presentations, etc.
3. What is ‘GENERIC KNOWLEDGE’?
Generic Knowledge (GK) is the FOUNDATION COURSE required by any individual wanting to provide general or personal advice to a retail client. GK covers the following topics:
| The economic environment | • characteristics and impact of economic and business cycles • interest rates, exchange rates • inflation • government monetary and fiscal policies |
| Operation of financial markets | • roles played by intermediaries and issuers • structure and inter-relationships within the financial markets • inter-relationship between industry sectors |
| Financial products | • concept of a financial product—general definition, specific inclusions, exclusions • types of financial investment products • types of financial risk products (e.g. derivatives, risk insurance products) |
Generic Knowledge content is covered in the first FOUR Modules of IIT’s course Financial Planning in Practice.
4. What is the minimum training requirement if I ONLY want to provide GENERAL ADVICE?
General advice involves communicating with a retail client but at no time does the Financial Adviser take in to account the individual’s personal objectives, financial situation and needs.
The Adviser must make no recommendations in relation to a financial product’s suitability for a retail client, nor can the Adviser 'select' from a group of potential products which might be suitable for a particular client in relation to their personal needs, circumstances or objectives.
If you want to provide 'general advice' to a retail client then you must have undertake the following level of study:
General Advice Adviser = Generic Knowledge + at least one Specialist Knowledge Area
The SPECIALIST KNOWLEDGE areas are covered in Appendix A2 of RG146 issued by ASIC and include Financial Planning, Insurance, Superannuation, Securities, Managed Investments, Derivatives, Foreign Exchange, Deposit products and Non-Cash Payment products.
5. What is the minimum training requirement if I ONLY want to provide PERSONAL ADVICE?
Personal advice is “financial product advice that is given or directed to a person (including by electronic means) in circumstances where:
• the provider of the advice has considered one or more of the person’s objectives, financial situation and needs; or
• a reasonable person might expect the provider to have considered one or more of those matters.
If you want to provide 'personal advice’ to a retail client, you MUST complete Financial Planning in Practice – this course contains both Generic Knowledge and Financial Planning Skills. ASIC has set out the skills required in Appendix B of RG146 and state:
RG 146.142 Advisers providing personal financial advice to retail clients should be able to apply appropriate skills in relation to their activities and the products and markets in which they operate.
6. What training do I need to do if I want to move from providing General Advice to Personal Advice?
As you already provide general advice, you must have completed the Generic Knowledge requirements as set out under RG146 – that is, the first FOUR Modules of IIT’s Financial Planning in Practice.
Therefore, to provide personal advice you will simply have to complete the remaining modules of Financial Planning in Practice. This can be done by attending an Intensive 1 day Workshop or by Distance (self-paced) Education.
7. I want to specialize in a particular area. What training do I need?
As mentioned previously, Generic Knowledge is the FOUNDATION COURSE required by any individual seeking to provide general or personal advice in any Specialist Knowledge area. At IIT, our courses are as follows:
GK = Generic Knowledge (first FOUR Modules of FPP)
FPP = Financial Planning in Practice
PRM = Principle of Risk Management
PIP = Principles of Investment Planning
PRS = Principle of Retirement and Superannuation
If you wish to specialize as a particular type of Financial Adviser then you need to undertake the following courses:
| Courses Required | Workshop | Distance Education | Courses Required | Workshop | Distance Education | |
| Type of Adviser | Personal Advice | General Advice | ||||
| Insurance Adviser | FPP + PRM | 4 Days | YES | GK + PRM | 3 Days | YES |
| Investment Adviser | FPP + PIP | 4 Days | YES | GK + PIP | 3 Days | YES |
| Superannuation Adviser | FPP + PRS | 4 Days | YES | GK + PRS | 3 Days | YES |
| Financial Planner / Adviser | FPP + PIP + PRS + PRM (Full Diploma) | 8 Days | YES | Must provide PERSONAL advice | N/A | YES |
Depending on the type of advice you want to provide and the specialist knowledge area(s) you wish to provide advice in, the courses detailed in the table above will provide you with the required Unit of Competencies to meet the minimum training standards as set out by ASIC in RG146.
Units of Competency issued include:
• ASIC Units of Competency
• Prerequisite Units of Competency (for ASIC Units)
• Industry Core Units of Competency
• Sectoral Core Units of Competency
• Elective Units of Competency
Please call our friendly team of Education Advisers if you want more details about the specific units of competency covered in each IIT course.
8. How does ‘Distanced Education’ work?
Distance Education is sometimes referred to as self-paced learning.
Distance Education is ideal if you can't take the time off work, have family commitments, or just prefer to learn at your own pace. Distance Education only works if you have a disciplined approach to completing the assessments required to complete the course(s) you have enroled in. If you feel you need more structure or learn better in a classroom environment then our intensive workshops are probably a more suitable option.
With the Distance Education option, you have continual access to our dedicated team of Distance Education Facilitators to help you with any queries you might have. You can contact out team by phone or email. IIT’s Distance Education policy means you will have a response to your query within 24 hours.
The time taken to complete a course by distance education course varies according to the individual. You should set aside approximately 40 to 150 hours per course, depending on your level of financial services experience.
You will have FOUR months to complete any course you are undertaking by distance education. Time Extensions are possible however you will need to apply, in writing, to the Education Manager prior to the expiration of the four month period.
At any stage you can elect to upgrade to an Intensive Workshop Program and simply pay the difference in the course price.
9. What are the benefits of the Intensive Workshop Programs?
Intensive workshops enable you to complete your chosen course(s) in the fastest possible time.
Workshops allow learning to be accelerated under the careful instruction of one of our expert Facilitators who are industry professionals with ‘real world’ experience and who take the time to tell the ‘war stories’ which help explain the concepts. Workshops are LIMITED to no more than 10 participants to ensure you receive individual, personalised service in relation to any queries you might have.
It also allows you to ‘bounce ideas around’ with other participants – not to mention the networking opportunities!
IIT conducts one workshop per course per month in most major capital cities in Australia. Each course at the Diploma level is structured so that each takes 2 Days to complete – 8 days for the full Diploma. Our Certificate courses can be structured to suit individual needs – please contact one of our friendly Education Advisers for more details.
10. What is Recognition of Prior Learning (RPL)?
Recognition of Prior Learning (RPL) simply involves an individual assessment of your KNOWLEDGE and SKILLS based on your work and life experience. Knowledge and skills can be demonstrated (and assessed) by THREE main methods:
Option 1. RPL by Recognition of Qualification / Statement of Attainment
This method is to be used if you have completed a course similar course to those offered by The Academy and also meet the required competencies of the FNS50804 Diploma of Financial Services (Financial Planning).
• If you have completed a course that has similar content and leaning outcomes to those offered by The Academy (but not accredited under the ALTF) or
• If you have completed a course that covers the same competencies (under the Australian Training Framework, AQTF) to those offered by The Academy; and
• This course is listed on the ASIC training register.
This method requires you to supply certified copies of academic transcripts and if a non AQTF course learning outcomes and outline of the course. If your course is not listed on the ASIC Register you maybe eligible to apply for RPL by Assessment instead.
Key evidence required for RPL assessment:
• Copy of Statement of Attainment and/or relevant Qualification
• Certificate of Completion for non-award training courses
• Print out relating to the training undertaken from the ASIC training register showing full details of course as it appears on the register (www.asic.gov.au)
Where the training being submitted as evidence was completed before 1995 we require evidence that ongoing continuing professional development and training has been undertaken to maintain the currency of knowledge and skills.
Option 2. RPL by Portfolio of Evidence
• If you have no formal qualifications that cover the competencies contained within the FNS50804 Diploma of Financial Services (Financial Planning) and product area and
• Have at least 5 of the most recent 8 years of relevant industry experience within the financial services industry sector that you are applying for RPL
You will be required to submit a portfolio of evidence to support your claim including your resume and work samples and complete a competency check form. Key evidence required for RPL assessment:
• Current Resume.
• Do you have 5 from the previous 8 years experience in the industry and/or area you are seeking RPL for?
• Samples of further evidence such as job descriptions, sample statements of advice, file notes, certificates for previous training, performance appraisals, and references from employers, supervisors and clients as well as any relevant documentation that the student has developed.
Option 3. RPL by Assessment Only
This method of RPL is available if you:
• have not undertaken formal study that meets the criteria set out in Option 1, or
• Are not able to product a portfolio of evidence; however, you
• Believe you are able to demonstrate the competencies required for the FNS50804 Diploma of Financial Services (Financial Planning) and have considerable industry experience in a particular product/ knowledge area.
Key evidence required for RPL assessment:
• Current Resume
• Evidence of any training undertaken
• Evidence such as job descriptions, performance appraisals, and references from employers, supervisors and clients as well as any relevant documentation that the student has developed.
Please indicate on the Enrolment Form if you are applying for RPL. One of our friendly Education Advisers will contact you to discuss your eligibility and the evidence that will be required. Evidence can be supplied to IIT by any of the following methods:
• fax to the Education Manager on 03 9821 5145 or
• mail to International Institute of Technology,
Suite 314, 1 Queens Road, Melbourne 3000 or
• email attaching a scanned copy to education@iitedu.com.au
11. I want to become a Para-planner. What are the minimum training requirements I need?
Paraplanners assist Financial Planners / Advisers in the preparation of financial planning strategies as well as the construction of Statements of Advice (SoA). ASIC states in RG146:
“RG 146.27 Where para-planners and trainee advisers are used in relation to the provision of financial product advice, we consider that the licensee must have compliance measures in place designed to ensure that a person who satisfies the training standards plays a material role in the provision of the advice, as described in RG 146.26. These measures must include an effective means of monitoring what para-planners and trainee advisers say to retail clients. Further, while para-planners and trainee advisers do not have to comply with the training standards, licensees must ensure that their para-planners and trainee advisers have the necessary competence to perform their functions: see s912A(1)(f).“
Therefore, most organisations (if not all) require Paraplanners to have, as a minimum, the full FNS50804 Diploma of Financial Services (Financial Planning).