The Australian Securities and Investment Commission (ASIC) has released a consultation paper to seek views on a new training and assessment framework for financial advisers.


Consultation Paper 153 Licensing: Training and assessment framework for financial advisers contains proposals relating to the assessment and professional development of financial advisers of Tier 1 products. It addresses issues identified in ASIC's review of the present training and assessment framework and seeks feedback to those proposals.

ASIC Commissioner Greg Medcraft said the review had identified concerns about current training standards and highlighted that change is required to increase consumer confidence in the financial advice industry and to encourage professionalism.

The proposed framework for assessment and professional development is designed to improve the quality of advice by ensuring that all financial advisers achieve a uniform minimum standard that is consistent with developments in the industry both here and overseas,’ he said.

ASIC proposes amending the assessment and professional development framework for financial advisers by requiring:

  1. all new and existing financial advisers who provide Tier 1 financial advice to pass a Financial Services Competency Certification exam to ensure they have the requisite competencies to perform their role. (‘Entry Stage’);
  2. all new financial advisers following Entry Stage to be supervised by a supervisor (who has at least 5 years experience in the industry) for a minimum period of 1 year full time or equivalent;
  3. all financial advisers to undertake a Knowledge Update Review every three years on changes to laws, market issues and new products; and
  4. ongoing continuing professional development requirements.


Feedback on CP 153 is requested by 1 June 2011. The discussion paper and further information are at http://www.asic.gov.au/asic/asic.nsf