ASIC has released an updated version of Regulatory Guide 146: Licensing: Training of financial product advisers (RG 146). RG 146 sets out the minimum training standards for financial product advisers and explains how advisers can meet these training standards.

The revisions to RG 146 follow a review ASIC carried out to deal with issues raised by industry stakeholders and reflected in the Corporate and Financial Services Regulation Review – Proposals Paper released by the Parliamentary Secretary to the Treasurer, the Hon Chris Pearce MP, in November 2006.

The main issues raised were:

• training standards may at times not be appropriate for services provided; and
• RG 146 may not adequately recognise prior study and training.

ASIC’s review addressed these issues, but did not involve a broad review of the basic policy in RG 146. It also looked at concerns about the currency of courses on the ASIC Training Register and mechanisms to review the quality of courses on the ASIC Training Register.

As part of the review, ASIC held detailed discussions with key industry stakeholders, and consulted formally through Consultation Paper 88: Reviewing and updating RG 146: Training of financial product advisers.

ASIC has decided to:

• amend RG 146 to facilitate more tailored and flexible training requirements for some products that are relatively straightforward and do not involve an investment component (Tier 2 products);
• maintain the current requirements that advisers be trained across the range of products within existing specialist knowledge categories;
• maintain the existing policy on the recognition of prior study and training;
• amend RG 146 to clarify ASIC’s capacity to deal with non-compliant courses;
• improve the currency of the information on the ASIC Training Register by requiring course providers to periodically re-register courses; and
• clarify some aspects of ASIC’s policy and re-write it in the new regulatory guide format.

ASIC has also commenced work on changes to improve the functionality of the ASIC Training Register by:

• improving the search function;
• updating the layout of the information on the Register; and
• transferring courses no longer provided to a separate section of the Register.

Download:

• Regulatory Guide 146: Licensing: Training of financial product advisers
• Report 110: Report on submissions for CP 88 Reviewing and updating RG 146: Training of financial product advisers