The RG146 compliant training that was formerly known as policy statement 146(PS146), is an Australian training that is issued by Australia securities and investments commission (ASIC) as an assessment for all people selling financial products. It acts as a financial regulation for most of these financial traders and also acts as minimum requirement for them to be licensed with the relevant licenses. When a candidate is certified with the rank, then he/she must have passed the recognized examinations that have allowed him/her to be issued with the proper documents that facilitate his financial practice. It is a according to regulation that all people who wish to sell financial products in Australia must pass through the training. Therefore the relevant stakeholders have taken the necessary steps to make the courses involved in RG146 training easily available to the masses through the internet or by hard copy.
RG146 Compliant Training
Under any compliant RG146 training course, an adviser can either be defined as a general financial adviser of a personal finance adviser. General finance adviser is further elaborated in the tier 2 while the personal financial adviser is defined in the tier 2. Among the various courses that may lead to the above is accounting courses, which go long well with the following regulations. Now a financial adviser is planning on advising a client on about his/her financial position or is sure of the financial position of the client and the adviser is recommending a product then that kind of advice is defined as tier 1 advice. Now on the other hand if the financial advisers are advising on the general terms of trade i.e. recommending a certain product to the masses through the media or any other form then that is defined as the tier 2 advices.
Technically, the financial adviser in the tier 2 sells the financial products in large quantities to the tier one advisers allowing them to sell to their clients down stream and in smaller quantities. Now the financial adviser will consequently sell the financial product to his/her client after carefully analyzing different angles and presentation that would benefit the client in both the short term and long run. It is this reason that most banks do not get involved in so many financial advice transactions; the investment banks usually employ a large sales team in the tier 2 category of advice (people who have taken financial planning courses), who will then be responsible for selling some of the financial products downstream to the tier 1 advisers and subsequently to the clients.
Now, when one would like to receive the RG146 compliant license to become a tier 1 financial adviser and which is more complicated than receiving a tier 2 financial adviser. Generally a tier 1 financial adviser takes only two exams to be fully compliant while the tier 1 takes only 1exam. Tier 1 advice is divided on various categories that are centered on specific segments of the financial market such as managed investments including life insurance, superannuation, derivatives and securities. A financial adviser may choose to study all this individually or through a succession in the diploma of financial services (financial planning).