The regulatory guidelines issued by ASIC cover a wide range of processes and functions within the finance and insurance industries in Australia. This could be anything from detailed superannuation processes, prospectuses,

investment schemes, managed investments, takeovers and auditing functions. Each of these will have their own

regulatory guideline (RG) number.

The RG146 guidelines cover education courses that relate specifically to the training and licensing of financial

product advisors. Financial product advisors include any person that provides financial product advice to their retail clients, that is, ordinary members of the public. The RG146 guidelines also provide guidance on how the providers of training for these product advisors should be undertaken.

In addition, the RG146 guidelines distinguish between financial product advisors that give general advice, (advice

that is generic in nature and not subject to individual circumstances) and those that give personal advice (advice

that is specific to the unique circumstances of the individual client).

The topics that need to be covered by these courses include:

Communication skills. How to profile and build rapport with the client, how to listen and understand the client and how to effectively provide feedback to the client on

their needs and recommended solutions.

The Economy. How does our economy work, what are the governing principles, what the objectives of economic and

government policy are and how do economic cycles influence businesses.

Financial markets. How do our financial markets work, who are the participants and how are they regulated.

Financial products. What financial products are available on the market and what are their profiles in terms of asset

class and risk.

Taxation. The taxation system in Australia, the different components of the taxation system and how to calculate

taxation liability.

Financial planning skills. Understanding the clients needs and their risk profile, developing appropriate strategies that address the clients needs given their risk profile, communicating the solution effectively, getting client

agreement to the solution and implementing it.

Social Security. Understanding the various components of government benefits including those relating to age,

income, assets and health, and how these components relate to the overall financial plan for each client in terms

of taxation and net benefit.

Estate planning. Understanding Wills, executors, guardians, estate and non-estate assets and power of

attorney.

It is a reasonably extensive and detailed syllabus, as should be the case where the livelihood and financial

future of clients is at stake. There are also provisions in the ASIC guidelines for the correct management and oversight of product advisors as well as gap training for those that

may have not done training for some time, or have crossed from a different area within the industry.

This course also acts as a base for more specialized courses within the industry.

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