RG146 course options – which one is for me?
We have conveniently broken up the Diploma of Financial Planning to allow you to complete an individual RG146 compliant course in specific advice areas. This includes Investments which covers Managed Investments, Securities and Derivatives. Another advice area is superannuation, and you can choose to include RG146 SMSF within this. RG146 Life Insurance is covered in a separate module.
These are the core education building blocks making up the RG146 Diploma of Financial Planning qualification. It is important to know RG146 in Margin Lending is a growing advice area. This can be studied stand-alone, or is covered in the Advanced Diploma of Financial Planning.
Because many job roles in financial services are not financial planning roles, they require RG146 compliance in only one or two specific areas. For example a job role at a superannuation company encompassing the provision of information to members about their superannuation accounts, might only require you to complete the RG146 Superannuation course. Or if you were seeking a job role at an insurance company, you might only need RG146 Life insurance accreditation.
If you worked for a fund manager, you might need to complete only the RG146 Investment Course. Many students choose to complete the full Diploma of Financial Planning because it encompasses all the key RG146 areas required to give both general and personal advice. It is also better value to enrol in the full Diploma qualification, compared to enrolling on a module by module basis. We even offer Xplan software training, Australia’s leading financial planning software used by over 70% of the financial advice industry.
Why is financial services so heavily regulated?
For those wishing to work in the Australian financial services industry, RG146 training and certification is required because it is such a heavily regulated space. Because the financial services industry turns over billions of dollars each year, the Australian Government has a vested interest in ensuring it is conducted in an orderly, professional and transparent manner at all times, and of course with consumer protection at its core.
This is why the Australian Government via ASIC released a regulatory guide (called RG 146) specifying what training and education people are required to do, in order to work in various roles within the financial services industry. And the financial services industry is massive. It covers banks, insurance companies, super funds, fund managers, stock brokers, financial planning firms, dealer groups, insurance brokers (….the list goes on). It employs a lot of Australians.
Staying on the right side of the law
ASIC’s intention is to ensure all providers of product advice are suitably qualified. It is important to appreciate that it is unlawful to provide advice to Australian retail clients in any area or on any financial product where you do not meet the education standards in accordance with ASIC RG146 guidelines, and be authorised by an Australian Financial Services Licensee (AFSL). That is often your employer, however self employed people can also obtain their own AFSL.
What if I have prior education?
Did you know, you could have a Masters Degree in Economics and still be required to complete RG146 training if you wanted to work in many jobs within the financial services industry? Ultimately it depends on the job role as to what RG146 training (if any) you must complete. There are knowledge and skill areas covered in the ASIC course units. An important element is to understand your regulatory obligations comprehensively when giving financial advice, particularly the Future of Financial Advice (FOFA) reforms. If you have studied elsewhere, we will look at your qualifications and experience and provide advice on your options regarding obtaining recognition of prior learning (RPL).
Choosing your online RG146 training provider
Monarch Institute works directly with a number of large financial services employers as an online RG146 training provider ensuring existing staff are adequately trained, accredited and compliant for their specific job role. And that’s the issue – if you work in insurance, you only need to be RG146 compliant in insurance, not necessarily covering investments. Or vice versa. And then there is the issue of whether you have any interaction with consumers in your job role, and whether that interaction is considered ‘general’ advice or ‘personal’ advice.
You might only need RG 146 course training to cover you providing general advice to consumers if you work for a superannuation company and are required to provide account balance information, or other general information about their super fund investment. On the other hand, if your job role required you to provide consumers with advice about which type of fund is best suited to their specific needs, or how much additional super contributions they should make, you would then be required to complete RG 146 training that covers both general AND personal advice .
The good news is that Monarch’s Diploma of Financial Planning is an accredited RG 146 training provider for managed investments, superannuation and insurance. You can also continue on to complete the Advanced Diploma of Financial Planning with Monarch. Importantly Monarch’s RG146 training covers both general and personal advice meaning you are completely prepared for either your existing job role in financial services, or future job roles.
Get in touch with our friendly course consultants today, who can advise you about your RG146 compliance requirements.
Sources: lmip.gov.au, joboutlook.gov.au