New competency requirements for licensees are incoming

Alex Burke,  Senior Writer,  No More Practice Education

Responding to the new education standards being deployed across the advice industry, ASIC is proposing to introduce new competence requirements for advice licensees.

Explaining the proposed changes, ASIC commissioner Danielle Press said they were "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."

What are the current requirements?

As per Regulatory Guide 105 Licensing: Organisational competence (RG 105), advice licensees are required to "nominate responsible managers who will have direct responsibility for significant day-to-day decisions about the licensee's financial services business."

In order to demonstrate a responsible manager's knowledge and skills, there are currently five options available. These are:

  1. “Meet widely adopted or relevant industry standard or relevant standard set by APRA,” and possess “three years’ relevant experience of over the past five years”
  2. “Be individually assessed by an authorised assessor as having relevant knowledge
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