ASIC Proposes Responsible Managers Pass FASEA Standards

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Advice licensees will be required to have a responsible manager who holds a FASEA approved education standard and has passed its adviser exam, under new proposals released by ASIC.

The regulator released the proposals as part of an industry consultation on suggested changes to Regulatory Guide 105 which outlines a licensee’s compliance with the organisational competence obligations of the Corporations Act.

Under the proposals, advice licensees would be required to have at least one responsible manager who has:

  • Satisfied the degree requirement that applies to existing financial advisers
  • Passed the financial adviser exam
  • Met the CPD requirements
  • At least three years relevant experience over the past five years

The draft RG 105 indicated the new responsible manager requirements will apply to all AFS licensees authorised to provide personal advice to retail clients and responsible managers would not be required to complete a full bachelor degree approved by FASEA.

…licensees would be required to have at least one responsible manager who has satisfied the degree requirement that applies to existing financial advisers…

Rather, responsible managers could adopt one of five education pathways set by FASEA for existing advice providers, depending on what qualifications they already hold.

New and existing responsible managers would have the same timeframes as current advisers to pass the exam and satisfy the degree requirement, which are until 1 January 2021 and 1 January 2024, respectively.

ASIC stated the changes, which have been released through Consultation Paper 305, are based on the existing draft guidance published by the Financial Adviser Standards and Ethics Authority (FASEA), and in time will replace the current standard for responsible managers contained in RG 146.

ASIC Commissioner, Danielle Press said, “Our proposals are designed to strengthen the organisational competence of financial advice licensees by ensuring that advisers are supervised by at least one responsible manager who satisfies the new education and training standards”.

Submissions on the consultation paper are due by 6 December 2018, with an updated RG 105 expected to be released in early 2019.



1 COMMENT

  1. 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.

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