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Friday, 19 July 2013

FAQs about RG146 Compliance

The Australian financial services industry is constantly evolving. To be a professional financial adviser, you must first meet the minimum qualification and training standard detailed in the Australian Securities Investment Commission's Regulatory Guideline 146 (RG146). You can meet these standards by successfully completing training courses listed on the ASIC Training Register specific to your advisory activities.

Why is it necessary to be RG 146 compliant?

The intention of RG146 is to ensure that all who professionally give financial advice are qualified and competent. It is unlawful to provide advice to Australian financial clients in any area of finance where you do not meet the standards set by RG146.

What constitutes financial advice?

Financial advice is a recommendation, a statement of opinion, or report intended to influence people in  buying, selling, or holding a particular financial product. Financial advice can either be general advice (advice that is not subject to individual circumstances) or personal advice (advice specific to the circumstances of the individual client). RG146 guidelines distinguish between advisers that give general advice and those that give personal advice.

Are there any specific requirements for general and personal advisors?


A provider of general advice is required to complete a unit of Australian Industry Essentials (AIE). On the other hand, a provider of personal advice must need to complete AIE and Financial Advice Fundamentals. If you seek full RG146 accreditation, you must complete at least one specialist subject related to the type of financial product you want to specialise in.

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