ASIC released a consultation paper CP 305 Organisational competence requirements for advice licensees: Update to RG 105 this week, which proposes a new option for demonstrating the knowledge and skills of a responsible manager.
When applying for an AFS licence application, applicants must nominate responsible managers who will have direct responsibility for significant day-to-day decisions about the licensee’s financial services business.
The current policy that ASIC uses for assessing the knowledge and skills for responsible managers is set out in RG 105.
Responsible managers currently have five options for demonstrating the knowledge and skills which each has a knowledge and skills component.
ASIC is now proposing to add a sixth option which would include a knowledge component comprising the new financial adviser exam, the degree requirement and the CPD requirement, as well as a skills component comprising three years relevant experience over a five-year period.
The other proposal by ASIC is to introduce a requirement that advice licensees must have at least one responsible manager who satisfies option six.
“We are proposing to give both new and existing responsible managers until 2021 to pass the financial adviser exam and until 2024 to meet the existing provider degree standard,” the consultation paper stated.
ASIC is seeking feedback on the likely compliance costs of the proposals, the effect on competition and any other benefits or impacts. Feedback on the consultation paper are due by December.
For some a more immediate need is to have someone ensure the client is alive …as being a dead client has proved to be an opportunity to succeed !&
I’m not completely over the suggestions yet and am certainly not a fan of certain existing and purposed regulation. However, should there not be a relatively high bar to be an RM?
What ever version of FASEA passes, it MUST apply to All involved.
Given every part of the Financial System has had issues and let the system down, especially the CEO’s and Government bodies, these people must be made to jump through the same hoops as the lowly Financial Advisers.
FASEA for ALL involved !!!!!!
FASEA for ALL involved in any part of Financial Services !!!!!
ASIC, APRA, ATO, etc CEO’s, Executives & Managers making these rules must have passed them.
All Politicians must do FASEA, especially the ETHICS.
All Bank CEO’s, Executives & Managers must do FASEA.
All Life Insurance Co. CEO’s, Executives & Managers must do FASEA.
All Super Fund Trustees, CEO’s, Executives & Managers must do FASEA.
All Financial Associations, FPA, FSC, AFA, SMSFA, etc CEO’s, Executives & Managers must do FASEA.
And lets not forget the FASEA CEO’s, Executives & Managers must do FASEA, surely these people need to have passed the qualifications to be forcing them on Advisers.
Regards
Adam Passwell
This financial advice industry is a beacon of confidence (not). Great idea to implement even more rules. Winner!!