ASIC RG 146* Tier 1 Compliance

The Australian Securities & Investments Commission (ASIC) is an independent government agency that is responsible for the regulation and enforcement of company and financial services laws within Australia. ASIC regulates Australian companies, financial markets, financial services organisations and professionals who deal and give advice in investments, superannuation, insurance, deposit taking and credit services.

What is RG 146?

The ASIC's Regulatory Guide 146: Licensing: Training of financial product advisers (RG 146*) dictates a minimum standard that must be achieved for people who provide general or personal advice to retail clients for financial products. General advice (Teir 2) is not targeted to the personal needs of a client. Examples include presentations about financial products, newsletters and product fliers. Whereas, personal advice (Tier 1) is a considered opinion that relates to the specific needs of an investor.Hence, most graduates of programs within the finance discipline will be subject to RG 146 compliance as part of their employment. A list of potential jobs that require RG 146 compliance are:

• Accountants
• Bank and Credit Union Staff
• Financial Planners
• General Insurance Brokers
• Investment Advisors
• Life Insurance Brokers
• Mortgage Brokers
• Property Promoters
• Real Estate Agents
• Superannuation Agents

Specialist Knowledge Areas**

The following list describes the specialist areas given by ASIC as needing compliance. When advice is given to retail clients in these areas compliance is required.

1. Financial Planning
2. Securities
3. Derivatives
4. Managed Investments
5. Superannuation
6. Insurance – general, life and broking
7. Deposit products and non-cash payment products
8. Foreign exchange

To be fully RG 146 compliant in one of the specialist knowledge areas generic knowledge and a skills component is required. Many University programs around Australia and at the University of Adelaide offer only partial compliance (skills component omitted) in a specialist area. To be attain full compliance see the ASIC training register to view institutions offering any omitted components.

Full compliance requires:

1. Generic Knowledge
2. Specialist Knowledge (see ** above for areas)
3. Skills requirement

RG 146 at the University of Adelaide

Students interested in gaining RG 146 Tier 1 compliance must take the following subjects. It should be noted that in addition to this, the skills component must be completed in order to gain full compliance in the specialised area. Students interested in complying for RG 146 should go to the ASIC training register to find a training provider for the skills component.

Specialist Knowledge Areas

1. Derivatives, Securities and Generic Knowledge

Undergraduate Programs

Bachelor of Commerce (Corporate Finance), Bachelor of Finance, Bachelor of Finance (International) and Bachelor of Finance (Quantitative)

Courses that must be completed within program:

• Principles of Macroeconomics I
• Principles of Microeconomics I
• Business Finance II
• Portfolio Theory & Management III
• Options Futures & Risk Management III
• Income Tax Law III

Postgraduate Programs

Master of Commerce (Applied Finance), Master of Accounting & Finance

Courses that must be completed within program:

• Economic Principles
• Principles of Finance
• Portfolio Theory & Management
• Options Futures & Risk Management
• Income Taxation

2. Financial Planning, Skills and Generic Knowledge

Diploma Program

Graduate Diploma in Global Wealth Management

Courses that must be completed within program:

• Investment Advisory Process and Client Adviser Relationship Management (IAPCARM)
• Economic principles (M)
• Principles of Finance (M)
• Global Wealth Management
• Tax Estate and Wealth Planning

* RG 146 may also be referred to as PS146