GENERIC KNOWLEDGE Fundamental and Essential Requirements
The objective of this course is to assist persons who provide financial product advice to clients to maintain, update and deepen their "Australian Industry Essential (AIE)" and "Financial Advice Fundamentals (FAF)" generic knowledge requirements.
Anyone giving financial product advice under an Australian Financial Services Licence (AFSL) must satisfy ASIC's training standards, which are explained in Regulatory Guide (RG146) Licensing: Training of Financial Product Advisers.
The "Financial Services Reform ACT 2001 (FSRA)" emphasises that the licensee is responsible for the actions of its representatives and will be accountable by law. Prior to several recent court cases and the introduction of the FSRA, it was generally thought that the representative was legally responsible. (This is no longer the case.) For this reason, licensees are placing more significant requirements on their representatives.
Regulatory Guide (RG 146) Licensing: Training of financial product advisers. Places the liability clearly with the licensee to ensure that their representatives "generic knowledge" requirements are developed prior to allowing them to provide certain types of financial advice (as per the licence authorisation) to consumers. Regulatory Guide (RG146) also contains the requirements for the ongoing professional development of advisers operating under a licence agreement.
On 24 June 2013 ASIC issued a Consultation Paper (CP 212) proposing changes to the training standards of financial product advice providers, set out in Regulatory Guide (RG146). The proposed changes have been recommended to the Parliamentary Joint Committee (PJC). These proposed changes should enable the Government, ASIC and the industry to achieve the unified goal of improving the competency and training standards of financial product advisers.
CPD Points: 4