Financial planning is a highly regulated industry, particularly when it comes to providing financial advice to the public.
Before you can provide advice that could influence a client's decision to purchase a financial product you must meet minimum training standards and hold an Australian Financial Services Licence (AFSL) or be authorised as a representative of an AFSL (unless covered by an exemption).
RG 146 training standards
In order to provide financial planning advice, you must meet both initial and ongoing training standards as defined in the Australian Securities and Investments Commission's (ASIC) Regulatory Guide 146 Licensing: training of financial product advisers (RG 146).
While there is no specific qualification in financial planning, the course you choose must be listed on the ASIC Training Register. The minimum requirements to comply with Tier 1 RG 146 are broadly equivalent to the ‘Diploma’ level. Consequently, most AFS licensees would be seeking the Diploma of Financial Services (Financial Planning) as a minimum.
Members of CPA Australia can complete the Diploma of Financial Services (Financial Planning) through RG 146 Training Australia, a Registered Training Organisation who focus on providing ASIC registered RG 146 training. This flexible training can be completed via self-paced distance learning or through interactive workshops.
Members of CPA Australia who enrol with RG 146 Training Australia and quote their CPA Australia membership will receive a 5 per cent discount off normal enrolment fees.
RG 146 Australia also offer the Advanced Diploma of Financial Services (Financial Planning) and a Self Managed Super Funds (SMSF) course for members who wish to further their financial planning training.
It is also important that you keep up-to-date with training, as required by ASIC’s Regulatory Guide 146. This means those giving advice should maintain, update and deepen their knowledge and skills on an ongoing basis.
CPA 110 and RG 146 study
Members who have completed CPA 110 within the past five years, along with the required skills assessment*, can apply to RG 146 Training Australia to have this previous study recognised towards attaining the Diploma of Financial Services (Financial Planning).
Where CPA 110 was completed during or before 2008, members will also be required to provide evidence of CPD in superannuation to ensure currency of knowledge and skills.
Licensing
Once you have successfully completed your training, you still cannot provide financial planning advice without a license. The term 'licensed' refers to AFSL holders and representatives or authorised representatives of licence holders.
A new entrant to the financial services industry will generally need to meet an experience requirement before obtaining a licence. They will need to operate under an existing AFS licence holder as either an authorised representative or a representative.
* In conjunction with CPA 110, members must also have completed one of the following skills assessments for CPA 110 to be recognised for RG 146 purposes:
- Client relationship training workshop (no longer offered)
- Mentor program including level 1 financial planning skills (no longer offered)
- Client Relationship Essentials (only available if CPA 110 completed within the past five years).