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 • My background M b k d • 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 Proposed national exam – Consultation process 2

ASIC’s role in financial product advice training d i t i i • General licence condition to ensure reps G l li diti t 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 of 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 has been seeking to improve the ASIC h b ki t i th 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 • Consultation Paper 212 Licensing: Training C lt ti P 212 Li i T i i of 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 • Generic knowledge – mandatory for G i k l d d t f 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 still supports the idea of a national ASIC till t th id f ti l 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 • Written submissions due 30 September W itt b i i d 30 S t b 2013 • Publish non-confidential submissions and feedback report p • Decide upon final policy position • Prepare Regulatory Impact Statement • Re-draft RG 146 10

11 policy.submissions@asic.gov.au Questions Questions