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10. 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 FNS50615 Diploma of Financial Financial Planning. We then suggest Paraplanners undertake the FNS60415 Advanced Diploma of Financial Planning with IIT, as the last subject focuses fully on Construction of Advice, which a Paraplanner must know to undertake this role. This then allows Paraplanners to progress into the Masters of Applied Finance (Financial Planning) with the first two elective subjects through IIT and the remaining 8 (instead of 12) through CSU. IIT is the only RTO to have this articulation agreement with CSU.

08. I want to specialise 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.

07. 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.

06. 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.

05. 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 undertaken or MUST 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.

04. 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 module of IIT’s course Financial Planning in Practice.

03. 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.

02. Who needs RG146 compliance?

RG146 compliance guidelines are formed under 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

  • 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
Financial Products
Tier 1 All financial products except those listed under Tier 2
Tier 2

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.

Operating since 2003, IIT is one of Australia’s leading private education providers, offering specialised training in many disciplines of finance. One of the main disciplines delivered by IIT includes RG146 compliant courses. The Diploma of Financial Planning FNS50615 includes many areas of RG146 as well as additional RG146 specialist knowledge areas, through our SMSF, Margin Lending and Foreign exchange RG146 courses. As a preferred provider of RG146 accreditation for many companies and Dealergroups, IIT also have a strong reputation in the Financial Services industry in our Accounting qualifications and Mortgage Broking qualifications.

The battle for jobs and advancement in today’s market is intense. When you’re up against other talented applicants, you need a clear competitive advantage. The way to demonstrate that you rise above the rest is through education. A strong RG146 accreditation background, demonstrates that you are not only motivated and committed, but backed by a strong foundation of industry relevant knowledge. So when you’re competing in the market for jobs and want to set yourself apart as a unique and dynamic candidate, your accreditation and training from your RG146 course will help you achieve your career goals.

Our RG146 courses are competitively priced and specially designed to help kick start your career in the highly lucrative financial services industry. They are also delivered by highly educated industry professionals, all of which possess a wealth of experience and educational backgrounds, both in the real world and with respect to RG146 accreditation itself. When you undertake International Institute of Technology’s RG146 courses, you will be exposed to powerful ideas that will help you to implement powerful strategies to achieve your objectives in the industry.

Financial planners and Accountants, looking to sell and advise on financial products require RG146 compliant training. IIT’s compliant courses will ensure you have the relevant RG146 training and qualifications to sell and advise on financial products in the most compliant way. The IIT learning environment is based on flexible delivery study modes and provides an open, warm environment with dynamic teachers and interesting training for your RG146 training needs. At International Institute of Technology, we deliver a high level of education for professionals looking to take their career to the next level with RG146 compliant courses. We will help you to achieve your goal of offering Financial Advice and fulfilling the government and legal regulations and requirements that can be complex and cumbersome for many people wishing to enter the industry.

Choose IIT’s RG146 courses and you’ll acquire the necessary skills needed for jobs in any area of financial Planning/Advising that you desire. We’ll help you take your career to the next level with our high calibre training solutions and of course, flexible modes of study.
For more information on our RG146 courses, as well as any other Mortgage Broking, Finance or Accounting courses we provide, please don’t hesitate to get in contact with us today. Call now on 13800 88 33 46 or alternatively, fill out our online contact form on the right and we’ll get in touch with you as soon as possible.

09. Difference Between Our Tier 1 and Tier 2 Units for FNS50615 Diploma of Financial Planning

Tier 1 units cover the following area’s available in the FNS50615 Diploma of Financial Planning:
Personal Advice – FNSASICZ503
Securities Advice – FNSASICW503
Derivatives Advice – FNSASICV503
Managed Investments Advice – FNSASICT503
Superannuation Advice – FNSASICU503
Life Insurance Advice – FNSASICX503
Tier 2 units covers the following area’s available in the FNS50615 Diploma of Financial Planning:
Establish client relationships and analyse needs – FNSASIC301
Develop, present and negotiate client solutions – FNSASIC302

01. What are the new requirements for Financial Planners?

FASEA (Financial Adviser Standards and Ethics Authority Limited) was established on 11 April 2017 to set the education, training and ethical standards of financial advisers, licensed under Australian law. New requirements for Financial Planners are now in place, with the minimum requirement to be an approved degree.FASEA latest update on requirements for existing Financial Planners 

Our Diploma of Financial Planning and Advanced Diploma of Financial Planning qualifications, meet the RG146 requirements in many areas of Specialist knowledge and these two combined qualifications allow students to gain credit into a degree with several universities and specifically the articulation arrangement IIT have with CSU (Charles Sturt University) into the Masters of Applied Finance (Financial Planning) See details in this course information link. Master of Applied Finance (Financial Planning) Articulation from IIT

On 13 June 2017, FASEA was declared as the standards body under the Corporations Act 2001. Under the Corporations Act 2001, FASEA is responsible for:

  • approving degrees or higher or equivalent qualifications
  • approving foreign qualifications
  • approving and/or administering the exam
  • determining the requirements for the professional year
  • selecting an appropriate common term for provisional relevant providers
  • setting supervision or other requirements for provisional relevant providers
  • determining the continuous professional development (CPD) requirements in relation to licensees’ CPD years
  • determining the requirements for financial advisers whose CPD year changes and whether to modify the operation of the Corporations Act for these individuals, for example, by requiring licensees to report non-compliance with the CPD requirement at a time other than at the end of their new CPD year
  • determining the bridging course requirements for existing providers
  • setting the Code of Ethics.

Please contact us should you require further information.

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