Regulatory Guide 146 (RG 146) on Training of financial product advisers, formerly known as policy statement 146 (PS 146) is an Australian financial regulation issued by the Australian Securities & Investments Commission (ASIC) related to the minimum training required by individuals selling financial products.[1] When used in the context of describing an individual it means that such an individual has completed relevant training and passed an exam recognised as meeting RG 146 criteria and is then able to provide advice on financial products to the general public in Australia.
All individuals must meet the RG146 requirements before they can sell financial products in Australia to the general public, this includes up-to-date ongoing training through a continuous professional development (CPD) program.
Policy Statement 146 (PS146) was introduced under the Financial Services Reform Act 2001 (FSR Act). It prescribes adequate levels of training, competence, and experience for those seen to be giving financial product advice to retail investors. It was part of ASIC's aim to protect so called 'mum & dad' investors. The designation was changed to RG146 by ASIC on 5 July 2007.
Structureedit
Under RG146 an adviser can be categorised in one of two ways, providing General financial advice or providing Personal financial advice. General financial advice is categorised as Tier 2, and Personal financial advice is categorised as Tier 1.[2]
If an adviser is considering an investors personal financial position (i.e. he/she is aware of the investors personal financial position, personal financial aims and needs, and is recommending a product) when recommending a financial product, then that is Tier 1 advice. However, if an adviser is simply talking about the benefits of a product without any personal reference to any client (i.e. he/she may be marketing a new financial product through the media, or a presentation to a group of different investors) then this is categorised as Tier 2 advice.
Generally (there are some exceptions to this rule) a Tier 2 adviser will be in a position to sell large quantities of a financial product downstream to Tier 1 advisers. The Tier 1 advisers will then on-sell the product in smaller quantities to his/her clients who he/she believes would have the most to gain from this particular product. For this reason investment banks generally concentrate on having a retail sales team for financial products consisting exclusively of Tier 2 advisers. By doing so, they reduce the number of transactions (because each transaction is of greater worth) and sell their product down-stream much faster.
Tier 1 compliance is harder to gain than Tier 2 as it takes into account individual's positions (which by their nature are diverse). Tier 1 requires two examinations, Tier 2 requires one examination.
Tier 1 advice is divided into a number of categories that focus on a specific segment of the financial market, for example: Managed Investments (see collective investment scheme), securities, derivatives, life insurance, and superannuation. An adviser can either choose to study these individually or in succession as part of the Diploma of Financial Services (Financial Planning). Whichever the adviser chooses to do they must ensure that they are RG146 compliant for the knowledge area they specialise in.
There are many providers of RG146 compliance training in Australia but these have to be registered with ASIC and meet specific criteria.[3]
^"I Need PS146 (RG146) Compliance Training". Investment Banking Institute. Retrieved 16 June 2013.
External linksedit
RG 146 Licensing: Training of financial product advisers
April 12, 2024
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This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article needs to be updated Please help update this article to reflect recent events or newly available information November 2010 The topic of this article may not meet Wikipedia s general notability guideline Please help to demonstrate the notability of the topic by citing reliable secondary sources that are independent of the topic and provide significant coverage of it beyond a mere trivial mention If notability cannot be shown the article is likely to be merged redirected or deleted Find sources RG146 news newspapers books scholar JSTOR May 2012 Learn how and when to remove this template message Learn how and when to remove this template message Regulatory Guide 146 RG 146 on Training of financial product advisers formerly known as policy statement 146 PS 146 is an Australian financial regulation issued by the Australian Securities amp Investments Commission ASIC related to the minimum training required by individuals selling financial products 1 When used in the context of describing an individual it means that such an individual has completed relevant training and passed an exam recognised as meeting RG 146 criteria and is then able to provide advice on financial products to the general public in Australia All individuals must meet the RG146 requirements before they can sell financial products in Australia to the general public this includes up to date ongoing training through a continuous professional development CPD program Contents 1 History 2 Structure 3 See also 4 References 5 External linksHistory editPolicy Statement 146 PS146 was introduced under the Financial Services Reform Act 2001 FSR Act It prescribes adequate levels of training competence and experience for those seen to be giving financial product advice to retail investors It was part of ASIC s aim to protect so called mum amp dad investors The designation was changed to RG146 by ASIC on 5 July 2007 Structure editUnder RG146 an adviser can be categorised in one of two ways providing General financial advice or providing Personal financial advice General financial advice is categorised as Tier 2 and Personal financial advice is categorised as Tier 1 2 If an adviser is considering an investors personal financial position i e he she is aware of the investors personal financial position personal financial aims and needs and is recommending a product when recommending a financial product then that is Tier 1 advice However if an adviser is simply talking about the benefits of a product without any personal reference to any client i e he she may be marketing a new financial product through the media or a presentation to a group of different investors then this is categorised as Tier 2 advice Generally there are some exceptions to this rule a Tier 2 adviser will be in a position to sell large quantities of a financial product downstream to Tier 1 advisers The Tier 1 advisers will then on sell the product in smaller quantities to his her clients who he she believes would have the most to gain from this particular product For this reason investment banks generally concentrate on having a retail sales team for financial products consisting exclusively of Tier 2 advisers By doing so they reduce the number of transactions because each transaction is of greater worth and sell their product down stream much faster Tier 1 compliance is harder to gain than Tier 2 as it takes into account individual s positions which by their nature are diverse Tier 1 requires two examinations Tier 2 requires one examination Tier 1 advice is divided into a number of categories that focus on a specific segment of the financial market for example Managed Investments see collective investment scheme securities derivatives life insurance and superannuation An adviser can either choose to study these individually or in succession as part of the Diploma of Financial Services Financial Planning Whichever the adviser chooses to do they must ensure that they are RG146 compliant for the knowledge area they specialise in There are many providers of RG146 compliance training in Australia but these have to be registered with ASIC and meet specific criteria 3 See also editFinancial planner Certified Financial PlannerReferences edit Regulatory Guide 146 Licensing Training of financial product advisers RG 146 Australian Securities amp Investments Commission July 2012 Glossary of financial terms International Institute of Technology International Institute of Technology Retrieved 7 December 2015 I Need PS146 RG146 Compliance Training Investment Banking Institute Retrieved 16 June 2013 External links editRG 146 Licensing Training of financial product advisers Retrieved from https en wikipedia org w index php title RG146 amp oldid 1190063199, wikipedia, wiki, book, books, library,
