Proposed enhancements to the training standards in to the training - - PowerPoint PPT Presentation

Proposed enhancements to the training standards in to the training standards in Regulatory Guide 146

Presentation to the Financial Planning Academics Forum

12/07/13

Introduction Introduction

M b k d

• My background
• Overview of the presentation

– ASIC’s role in financial product advice training – Rationale for changes to RG 146 – Consultation Paper 212 p – ASIC Training Register – Proposed national exam

2

Proposed national exam – Consultation process

ASIC’s role in financial product d i t i i advice training

G l li diti t

• General licence condition to ensure reps

are adequately trained and competent: s912A(1)(f) of the Corporations Act s912A(1)(f) of the Corporations Act

• Regulatory Guide 146 Licensing: Training

Regulatory Guide 146 Licensing: Training

• f financial product advisers (RG 146)
• Conditions 7(a) and 7(b) in PF 209
• ASIC Training Register

3

Rationale for enhancements Rationale for enhancements

ASIC h b ki t i th

• ASIC has been seeking to improve the

competency of financial advisers for some time now time now

• Improved competency can lead to better

Improved competency can lead to better quality advice and consumer trust

• Training standards may signal the

competence of the advice provider p p

4

Consultation Paper 212 Consultation Paper 212

C lt ti P 212 Li i T i i

• Consultation Paper 212 Licensing: Training
• f Financial Product Advisers – Update to

RG 146 (CP 212) published on 24 June RG 146 (CP 212) published on 24 June 2013

5

Overview of implementation Overview of implementation

Regime A (i.e. the current regime in RG 146) applies to:  existing advisers who do not want to change their advice activities Regime B applies to:  new advisers who start providing advice on or after 1 January 2015 and before 1 January 2019  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 Regime C applies to:  new advisers who start providing advice on or after 1 January 2019 advice on or after 1 January 2019  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 1 January 2015 1 January 2019

6

Changes to the training standards Changes to the training standards

G i k l d d t f

• Generic knowledge – mandatory for

Regime B and Regime C, 12 additional topics and one sub topic topics and one sub-topic

• Changes to the specialist knowledge

g p g requirements for financial planning, securities and superannuation

• Changes to the skill requirements
• Raising education level requirements

7

Proposed national examination Proposed national examination

ASIC till t th id f ti l

• ASIC still supports the idea of a national

exam

• Proposals in CP 212 are independent of the

proposed national exam p p

• Proposals in CP 212 complement the

proposed national exam proposed national exam

• Intersection of training courses and the

g national exam

8

ASIC Training Register ASIC Training Register

• ASIC Training Register is still under review
• Class no-action position for licensees
• Role of authorised assessors under the

class no-action position class no-action position

9

Consultation Process Consultation Process

W itt b i i d 30 S t b

• Written submissions due 30 September

2013

• Publish non-confidential submissions and

feedback report p

• Decide upon final policy position
• Prepare Regulatory Impact Statement
• Re-draft RG 146

10

Questions Questions

policy.submissions@asic.gov.au

11