The Australian Securities and Investments Commission (ASIC) has signalled it may change and upgrade the requirements to obtain RG 146 status once it becomes fully aware of the standards set by the Government's new standards setting body.
ASIC has responded to a question on notice from a Parliamentary Committee to signal that while RG 146 would still set the education and standards for advisers providing general advice it may well be subject to change to reflect the higher standards set for advisers providing holistic advice.
The regulator noted that the Parliament was currently considering the Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 dealing with the education and training standards for advisers who provide personal advice to retail clients on Tier 1 products.
"In light of this ASIC does not think it is appropriate for it to amend the standards in RG 146 for this group of advisers," it said.
"If the bill is passed, RG 146 will still set the education and training standards for those advisers who provide general advice on Tier 1 products to retail clients and those who provide personal or general advice on Tier 2 products," the regulator said.
It said ASIC proposed to review the standards in RG 146 for these advisers after the Standard Setting Body had determined the standards for those who provided personal advice to retail clients on Tier 1 products.
"We do not think it is appropriate to do so before then because we believe we should have regard to the requirements set by the Standard Setting Body when considering the relevant standard for those who provide general advice on Tier 1 products to retail clients and those who provide personal advice on Tier 2 products."
ASIC also noted that according to the information provided by licensees for the Financial Advisers Register, there were 1,542 advisers who first started providing advice in 2015, and 2,785 advisers who first started providing advice in 2016.