ASIC Regulatory Guide 146 (RG 146) is a cornerstone of Australia’s financial services regulation. It establishes the minimum training and competency standards required for individuals who provide financial product advice to retail clients. By setting these benchmarks, RG 146 helps protect consumers and uphold the integrity of the financial sector.
In this article, we will provide essential information about the Regulatory Guide or RG 146 set by the Australian Securities and Investments Commission (ASIC).
RG 146 is an official ASIC regulatory guidance that outlines the knowledge and skills advisers must possess to provide financial advice. It applies to a range of products, including securities, superannuation, and insurance. It is central to ASIC Regulatory Guide 146 licensing and training of financial product advisers.
ASIC regulatory guides, including Regulatory Guide 146, are not laws and, therefore, not legally binding. However, compliance with its standards is essential to meet licensing obligations under the Corporations Act 2001.
For Australian financial services (AFS) licensees and credit licensees, following these guides is necessary to maintain their licence and operate within ASIC’s regulatory framework. RG 146 ensures that advisers meet the qualifications and professional standards required to provide personal or general advice to retail clients.
This is the principal legislation governing companies, financial markets, and financial services in Australia. Enforced by ASIC, this Act aims to promote investor protection, market integrity, and confidence in Australia’s financial system. It covers financial reporting, disclosure obligations, takeovers, and the licensing and conduct of financial services providers, including those offering financial product advice.
Compliance with the Corporations Act is mandatory for all companies and financial service providers operating in Australia. The Act is designed to promote investor protection, market integrity, and confidence in Australia’s financial system.
ASIC Regulatory Guide 146 has a direct impact on the insurance industry and insurance brokers in Australia. It sets the minimum training, competency, and professional standards for those providing financial product advice on general insurance and life insurance products to retail clients.
Insurance brokers and advisers must complete specific training modules relevant to the insurance products they advise on. They must also demonstrate both generic knowledge in finance and specialist knowledge in insurance.
Meanwhile, AFS licensees in the insurance sector are responsible for ensuring their representatives meet these standards before providing advice. This supports trust and professionalism across the financial services industry.
Those who want to become insurance brokers or agents, and insurance professionals who give financial product advice to retail clients must meet RG 146 requirements. Other professionals who must comply with ASIC regulations include:
Insurance brokers providing general or personal advice on general insurance products
General insurance representatives advising clients on personal, business, or commercial insurance products
Life insurance advisers offering advice on life insurance products, such as term life, income protection, or trauma insurance
Insurance underwriters and claims consultants whose roles involve providing financial product advice
Call centre and customer service staff who provide general or personal insurance advice as part of their client interactions and wish to upskill and learn foundational knowledge
For more information on the most popular insurance jobs in Australia, check out this guide.
To comply with RG 146, advisers and brokers must complete ASIC-approved training through a Registered Training Organisation (RTO). This training includes both generic knowledge and specialist knowledge relevant to the financial products they advise on, like general insurance, securities, or superannuation.
Competency is demonstrated through formal assessment. Ongoing continuing professional development (CPD) is required to maintain compliance. Financial firms and credit licensees are responsible for ensuring their representatives meet these standards before providing personal or general advice to clients. The core requirements for ASIC Regulatory Guide 146 compliance are as follows:
Minimum training standards: Advisers must complete training covering both general financial and specialist knowledge specific to their advice area, such as financial planning or general insurance
Competency assessment: Individuals must demonstrate their competence through assessment by an ASIC-approved training provider or RTO, as outlined in ASIC’s information sheet
Continuing professional development: Ongoing CPD is required to keep skills and knowledge current with industry developments and professional standards
Licensee responsibility: Financial firms and credit licensees must ensure their representatives meet RG 146 requirements before they provide personal or general advice to clients
To satisfy RG 146, brokers must complete training through an ASIC-approved Registered Training Organisation (RTO). This training covers both generic and financial knowledge, like:
The financial products brokers advise on can include general insurance, securities, or superannuation.
Earning the ASIC Regulatory Guide 146 qualification is a crucial step for insurance brokers in Australia who wish to provide compliant financial product advice. By following the step-by-step process below, brokers can gain the necessary knowledge and skills to meet ASIC’s regulatory standards for general insurance advice.
Select an approved education provider offering the RG 146 General Insurance course. This course covers both Tier 1 (complex products) and Tier 2 (basic products) advice requirements.
Undertake coursework that includes topics such as insurance products, regulatory frameworks, ethical obligations, client needs analysis, and the provision of compliant personal and general advice.
Successfully complete all required assessments for each module. These may include multiple-choice exams, written assignments, and practical case studies to demonstrate your understanding and competency.
Upon passing all assessments, you will receive a Statement of Attainment from the education provider.
This is an important document, as it confirms you have met the ASIC Regulatory Guide 146 training standards for insurance advice.
There are several accredited educational providers in Australia that offer ASIC-compliant RG 146 training for various financial product advice areas, including general insurance, superannuation, and financial planning. These include:
Kaplan Professional: RG 146 General Insurance (Tier 2) and other RG 146 courses
Financial Education Professionals: RG 146 compliance courses
Monarch Institute: RG 146 training courses and RG 146 Professional Series (Insurance and Risk Management)
Apex Group: RG 146 Superannuation
To meet RG 146 compliance and be eligible to provide financial product advice, brokers must pass all required assessments set by their training provider. They must also engage in ongoing professional development to maintain their qualifications and stay current with industry standards.
Insurance and finance professionals considering earning the ASIC Regulatory Guide 146 qualification should weigh its benefits and drawbacks to determine if it aligns with their career plans.
Establishes minimum standards: RG 146 sets clear, consistent training and competency benchmarks for financial advisers, supporting professionalism in the financial services industry
Consumer protection: By requiring advisers to meet specific knowledge and skills criteria, RG 146 helps protect retail clients from poor or misleading advice
Industry credibility: The framework enhances trust and credibility in Australia’s financial services sector by promoting ethical conduct and ongoing professional development
Flexibility: RG 146 allows advisers to qualify in specific product areas relevant to their roles, rather than mandating a one-size-fits-all approach
Varied course quality: The standard allows for a wide range of course providers, which can result in inconsistent training quality and assessment rigour
Limited depth: The minimum requirements may not be sufficient for complex advice scenarios or evolving industry needs, especially compared to newer professional standards
Ongoing relevance: With the introduction of higher education and ethical standards for financial advisers, RG 146 may be seen as outdated for some advice roles, particularly those providing personal advice on complex products
Pursuing ASIC Regulation Guide 146 qualification is valuable if your career goals involve regulated advice or advancement within Australia’s financial services industry. Key reasons include:
Mandatory for compliance: Without RG 146, you cannot legally give financial product advice to retail clients in many roles
Career opportunities: It opens doors to positions such as insurance broker, adviser, or customer-facing roles in financial services. RG 146 can also help insurance professionals stay competitive in a fast-changing business environment
Professional credibility: RG 146 demonstrates that you meet ASIC’s minimum standards for training and competence, enhancing your professional reputation
Foundation for further growth: It provides a solid base for ongoing professional development and can be a stepping stone to more advanced qualifications as industry standards evolve
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