RG146 COMPLIANCE TRAINING

WHY DO I NEED RG146 TRAINING?

ASIC specifies in RG146.4 that "all natural persons who provide financial product advice to retail clients must meet the training standards (unless they fall within certain limited exemptions)." (The exemptions referenced apply to, for example, accountants, but that is being repealed on 1 July 2016).

They also make clear that it is a legal obligation to comply with Regulatory Guide 146 as a whole. Furthermore, ASIC have been demonstrating and flexing their muscle a lot.

In the six months leading up to December 2014, ASIC took enforcement action against 94 cases of white collar crime, leading to 173 criminial charges. Actual penalties awarded in some cases were as much as six years imprisonment and fines as high as $310,000.

In the the following six months between January 2015 and leading up to June 2015, ASIC took enforcement action against 323 cases of white collar crime which is a 46% increase in enforcement action compared with the six months prior.

In the past, they have successfully awarded both criminal and civil prosecution for individuals giving unlicensed financial advice which is known as unlicensed conduct.

In short, if you're providing anything that is considered financial advice or could be construed as financial advice in the future, it is prudent risk management and self preservation to make sure you are compliant with Regulatory Guide 146 and all Australian Financial Services laws and regulations.

Many of these cases could have been easily prevented with the correct training, correct licensing and by acting in an ethical and responsible manner.

Source(s): [1] Australian Securities and Investments Commission (5 August 2015), REP 444 ASIC enforcement outcomes: January to June 2015 (PDF), Australian Securities and Investments Commission, archived from the original (PDF).

[2] Australian Securities and Investments Commission (30 January 2015), REP 421 ASIC enforcement outcomes: July to December 2014 (PDF), Australian Securities and Investments Commission, archived from the original (PDF).