RG146 & FASEA – is RG146 Dead?
RG146 is NOT completely DEAD. It still applies to anyone providing GENERAL ADVICE in relation to financial products/services.
Some key quotes from a recent ASIC media release are… “RG 146 will not apply to new entrants to the industry seeking to become a relevant provider from 1 January 2019. They will need to meet the new professional standards requirements.” “RG 146 will continue to apply to financial advisers who are authorised by their Australian financial services (AFS) licensee as an ‘existing provider’ until the new requirements apply to them.”
IMPORTANTLY… “RG 146 will also continue to apply to advisers who are not ‘relevant providers’ – that is, those who only provide general advice, those who provide advice about Tier 2 or less complex financial products and those who only give advice in relation to a time-sharing scheme.”
QUESTION: Doesn’t RG146 also still apply for Client Service Officers/Paraplanners?
ANSWER: It may be mandated by an Employer, although ASIC is not necessarily mandating it. RG146 has never technically applied to CSO or Paraplanners – it has been an industry mandated approach.
QUESTION: What (will) happen(s) to RG146 and the diploma, considering going forward, it won’t be enough to allow you to be employed as an adviser?
ANSWER: Integrity Education Group offers a FASEA compliant education pathway for NEW ADVISERS (NAs) in 2019, with the DFP being the core, foundational element of this pathway. The DFP has tremendous value in 2019 and beyond as it provides the fundamental knowledge of financial planning as well creating the platform for CREDITS towards FASEA compliant Higher Education qualifications.
QUESTION: Will these credits count for New Advisers (NAs), or only Existing Advisers (EAs)?
ANSWER: An Existing Adviser, by definition and in most cases, will hold the DFP. From there individual EAs may hold other qualifications. The simple answer is DFP will provide credits for NAs and/or EAs towards Undergraduate Degrees. The amount of credits will vary across Universities. The DFP may not provide direct credits towards Grad Dip FP (GDFP), although DFP provides a pathway in to the ADFP which WILL PROVIDE CREDITS towards GDFP.
For EAs or NAs with DFP & who are eligible to enter GDFP, their best pathway may be the ADFP (by RPL or courseload) to receive TWO CREDITS BEFORE entering GDFP. This may save around $4-4.5k in course fees, reduce workload by not having to complete two AQF level 8 subjects, and save time in most cases.