ASIC relaxes PS 146 in response to “industry concerns”

THEAustralian Securities and Investments Commission(ASIC) has responded to industry concerns about the costs of “unnecessary” training requirements under the Financial Services Reform Act (FSRA) regime by modifying Policy Statement 146, its policy guide on the minimum training standards for financial planners.

ASIC’s executive director of financial services regulation Ian Johnston says the modified guidelines will provide greater flexibility in the development and assessment of training courses for advisers, particularly for those who provide only general advice or recommend only basic deposit products (BDP).

“ASIC has reviewed its position in light of the legislative approach to regulating these products, and will now provide greater flexibility to licensees,” Johnston says.

The revised policy removes the need for BDP training courses to be assessed by an authorised assessor and placed on the ASIC Training Register.

It also specifies that there is no need for the skill requirements of those financial planners providing only general advice to be assessed in line with conditions set out under PS 146. However, the new guidelines makes it clear that ASIC still “expects people providing general advice will be competent to provide this advice”.

Johnston says the changes were a reaction to industry concerns about training requirements for financial planners under PS 146.

The changes are also in line with recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services in a report released last October.

“The amendment of the policy regarding BDPs and general advice addresses industry concerns about costs and unnecessary training. Additionally, it reflects legislative intent without reducing the outcomes sought by this policy,” Johnston says.

“ASIC will monitor the quality of advice as a result of these changes and will review its position if it believes the advice being provided is not appropriate.”