FSRB requirements “garbage”

The new training requirements being proposed for life agents under the Financial Services Reform Bill (FSRB) were described as “garbage” by Association of Financial Advisers members at the group’s recent conference.

ASIC technical manager Annette Donselaar had explained there was to be no grandfathering rights under both the FSRB and IPS 146, so agents were going to have to meet the proposed standards for licencing.

This was met with uproar, with one Western Australian agent saying: "most of my customers will regard the moves as garbage".

Agents attending the session objected to the use of the term "authorised representative" in the legislation, as AFA members are proud of their agent nomenclature.

Donselaar says the objective of the new training requirements is that all representatives must demonstrate their knowledge and skills.

"Training must meet ASIC's requirements and license holders must ensure representatives are trained or assessed to future licensing requirements," she says.

The new proposals have a two-tier structure broken down into those authorised representatives that deal either with investment products or insurance products.

Training can be provide for these tiers either by ASIC-approved trainers or by having in-house schemes assessed by an independent assessor.

There will be a two-year transitional period from when the FSRB is passed. It could come into force from July 1 next year, depending on its passage through Parliament.