RG146 Compliance Solution FAQs Content Summary General... 3 How do I become a financial planner?... 3 How do I become RG146 compliant?... 3 Do I have to be a member of CPA Australia to be eligible to enrol?... 3 Are there any pre-requisite requirements to enrol in the RG146 Compliance Solution program?... 3 Will I be awarded a Diploma of Financial Planning if I complete the program?... 4 How many CPD hours are awarded for each module?... 4 How difficult is the RG146 Compliance Solution in comparison to the CPA program?... 4 What are Tier 1 and Tier 2? What level is the RG146 Compliance Solution?... 4 Where I can find further information on the program?... 4 Do I need a Unique Student Identifier (USI)? (How do I get one?)... 4 Accountants exemption reform... 5 Do I need to be licensed from 1 July 2016?... 5 Do I have to complete all modules?... 5 Do I need to complete all my study by 30 June 2016?... 5 Exemptions... 6 I have completed previous RG146 training; can I apply for any exemptions?... 6 I have completed CPA 110 - Personal Financial Planning and Superannuation. Is this recognised for RG146?... 6 Enrolment... 7 How do I enrol?... 7 Can I enrol in more than one module at a time?... 7 What are the costs?... 7 What is included in the enrolment fee?... 8 Are there any discounts available?... 8 What is the difference between the workshop and distance learning option?... 8 Can I upgrade into a workshop?... 8 When can I enrol into the next module?... 8 Can I enrol directly into the Advising in SMSFs assessment?... 8 Already Enrolled... 9 1
Where are my training materials?... 9 Where can I access my materials online?... 9 I want to cancel / withdraw my enrolment what do I need to do?... 9 Can I get a refund?... 9 Assessment... 10 How long does the assessment process take?... 10 How do I find my assessment date?... 10 Can I defer my assessment due date? / Different types of deferrals... 10 How are the modules assessed?... 10 How do I submit my assignment?... 10 When will I receive my certificate?... 11 How do I receive my results?... 11 What happens if I fail?... 11 Licensing... 12 I don t want to be a financial planner, I just want to provide SMSF advice. What do I need to do?... 12 How do I become licenced?... 12 Do I apply to CPA Australia to become licensed?... 12 I want to be an authorised representative, what do I do?... 13 2
General How do I become a financial planner? Before you can provide advice that could influence a client's decision to purchase a financial product you must meet minimum training standards set by ASIC in Regulatory Guide 146 Licensing: Training of financial product advisers (RG146) and be licensed under the Australian Financial Services licensing regime. For more information visit How to become a financial planner How do I become RG146 compliant? The training standards in RG146 require you to complete recognised training in the areas of advice that you are going to be licensed to provide to clients. The training you will need to complete will therefore depend on how you choose to be licensed. If you are going to be licensed as an authorised representative, you should check with your prospective AFS licensee what training you are required to complete to meet their requirements. If you are going to apply for your own limited AFS licence, then you will need to complete training that covers the following specialist knowledge areas, which reflect the areas of advice that you can provide under the licence: financial planning insurance investments (simple MIS, securities and basic deposit products) superannuation, and SMSFs. To comply with the RG146 training standards, you will also need to complete training that addresses the generic knowledge and skills requirements. Do I have to be a member of CPA Australia to be eligible to enrol? You do not have to be a member of CPA Australia to enrol. However, you must be a member of an IFAC accredited body (i.e. CPA, CAANZ, IPA) to enrol in the workshops. Are there any pre-requisite requirements to enrol in the RG146 Compliance Solution program? No, there are no pre-requisite requirements to enrol. 3
Will I be awarded a Diploma of Financial Planning if I complete the program? On successful completion of Module 1 and 2 you will be awarded the FNS50615 Diploma of Financial. Planning. How many CPD hours are awarded for each module? If you are a member of CPA Australia, 40 CPD hours will be automatically updated in your CPD diary on successful completion of each assessment for Modules 1-4 and 20 CPD hours on successful completion of the Advising in SMSFs assessment. How difficult is the RG146 Compliance Solution in comparison to the CPA program? The RG146 Compliance Solution program is not set at the same level of difficulty as the CPA Program. However, you will need to be self-directed and dedicate a reasonable amount of time to work through the learning material and successfully complete the assessments. You can use the training calendar to assist you plan your study and ensure you meet your assessment due dates. What are Tier 1 and Tier 2? What level is the RG146 Compliance Solution? ASIC divides financial products into Tier 1 and Tier 2. Tier 2 products are generally simpler and better understood than Tier 1 products, for example basic deposit products and related non-cash payment products, and, therefore, are subject to lighter training standards. The RG146 Compliance Solution program is a Tier 1 training solution. Where I can find further information on the program? Comprehensive information can be found on the website, including in the Candidate handbook at www.cpaaustralia.com.au/rg146 Do I need a Unique Student Identifier (USI)? (How do I get one?) All candidates must have a USI from 1 January 2015. To apply for a USI visit http://www.usi.gov.au/create-your-usi/pages/default.aspx. NB: Candidates should obtain their USI prior to registering for a module. Once CPA Australia has this on file they will not be required to resubmit their USI for future enrolments. 4
Accountants exemption reform Do I need to be licensed from 1 July 2016? The accountants licensing exemption, Regulation 7.1.29A, currently permits a recognised accountant to recommend a client establish or wind up an interest in an SMSF without being licensed under the Australian Financial Services (AFS) licensing regime. From 1 July 2016 if you wish to provide this advice must be appropriately licensed, either as an authorised representative of another entity s AFS licence or through holding their own limited AFS licence. A range of other superannuation advice and services also require you to be licensed, as outlined in our new fact sheet (PDF). In order to become licensed to provide this advice, you must complete recognised training that meets the training standards set by ASIC in Regulation Guide 146 Licensing: Training of financial product advisers (RG146). For further information on the licensing options refer to Information Guide: Accountants exemption reform. Require further guidance? Email finplan@cpaaustralia.com.au Do I have to complete all modules? If you are going to be licensed as an authorised representative, your prospective AFS licensee will advise in which RG146 specialist knowledge areas you will need to complete training. If you are going to apply for your own limited AFS licence, the RG146 Compliance Solution has been developed to meet these training requirements. However, if you intend on only applying for a limited range of authorisations under the limited AFS licence you may not need to complete all modules. Importantly, CPA Australia recommends that if you who wish to apply for your own limited AFS licence that you apply for all available authorisations. This is because you will not be able to vary your limited AFS licence to add additional authorisations once the transition period ends on 30 June 2016, unless you have previous experience as a licensed financial planner for at least three years. Do I need to complete all my study by 30 June 2016? The transition period for the accountants exemption reform ends 30 June 2016. If you need to be licensed to continue providing SMSF establishment advice, or other licensed advice, from 1 July 2016 you must complete your training before this date in order to then become licensed. 5
Exemptions I have completed previous RG146 training; can I apply for any exemptions? If you have previously completed recognised RG146 study, you may be eligible to apply for exemptions. If you have completed RG146 training with another Registered Training Organisation and completed the same unit of competency (or competencies) within your study that is also offered in the RG146 Compliance Solution, you can apply for a Credit Transfer. Further information and a list of all competencies can be found in the Candidate Handbook. To apply, you will need to complete a Credit Transfer application. Alternatively if you have at least five years relevant experience over the immediate past eight years in the areas in which you provide advice, you can apply for Recognition of Prior Learning (RPL). For more information on RPL, refer to www.cpaaustralia.com.au/rg146 > Related Policies. I have completed CPA 110 - Personal Financial Planning and Superannuation. Is this recognised for RG146? If you completed: CPA 110 in semester one 2003 (or earlier) CPA 110 and the mentor program including level 1 financial planning skills between semester two 2003 and semester two 2010 CPA 110 and the Client Relationship Training Workshop between semester two 2003 and semester two 2010, or CPA 110 and Client Relationship Essentials distance learning program between 2010 and 2015 you may be eligible for an exemption from Module 4 Superannuation of the current RG146 Compliance Solution program. PLEASE NOTE: CPA Australia recommends that if you completed CPA 110 more than five years ago and have not operated as a licensed financial planner during that time, that you update your knowledge and skills through completing Module 4. If you completed CPA 110 prior to 2003 you have not addressed the skills component of RG146 which is now a requirement to comply with the training standards. 6
Enrolment How do I enrol? To enrol download the enrolment form from www.cpaaustralia.com.au/rg146, complete and email to rg146cpd@cpaaustralia.com.au Can I enrol in more than one module at a time? You can only enrol in one module at a time. Module 1 and module 2 must be completed first, as these units contain prerequisite units of competency for the remaining modules. It is also strongly advised that you complete the modules sequentially. What are the costs? The current enrolment costs are set out in the below table. Fees may also apply for additional services, which are outlined in the Candidate Handbook. Product Member Non-Member RG146 Compliance Solution Two Day Face-to-face Workshop Distance Learning (includes online materials) Assessment Only Two Day Face-to-face Workshop Distance Learning (includes online materials) Assessment Only Module 1. Financial advice foundation $1,320 $540 $1,580 $640 Module 2. Insurance $1,320 $540 $1,580 $640 Module 3. Investments $1,320 $540 $1,580 $640 Module 4. Superannuation Advising in SMSFs (assessment only) $1,320 $540 $1,580 $640 - - $380 - - $460 7
What is included in the enrolment fee? The enrolment fee for a module includes: access to an electronic copy of training materials (accessed via Professional Development section of MYOL) a hard copy of the learning module and assessment ( note, there are no learning materials for the Advising in SMSF as this is an assessment only) marking of the written assessment and the oral assessment, and a Statement of Attainment / Academic Transcript issued upon successful completion of the module. On successful completion of Module 1 and Module 2, you will also be issued with the FNS50615 Diploma of Financial Planning certificate. Are there any discounts available? No discounts are available for this program. What is the difference between the workshop and distance learning option? If you enrol via distance learning, you have six months from the date of your enrolment to work through the learning materials and submit your written assignment. If you enrol in the workshop, you attend a two day workshop where you work through the learning materials. You are also provided guidance and support to complete the assignment. This provided the additional benefit of an interactive learning environment, including the additional benefit of being to ask the facilitator questions as you work through the materials. You then have six weeks to submit your written assessment. Can I upgrade into a workshop? Yes, you can do this by paying the difference between the distance learning and workshop enrolment fee. When can I enrol into the next module? You can enrol in the next module once you have confirmation you have successful completed the written assignment for your current module, while you are waiting to complete your oral assessment. Can I enrol directly into the Advising in SMSFs assessment? To be eligible to enrol you must have previously completed recognised RG146 training for the specialist knowledge area of superannuation, such as Module 4 of the RG146 Compliance Solution. If you have completed a recognised RG146 course in superannuation with another education provider, you must provide either your statement of attainment or academic transcript as evidence with your enrolment form. Your course will then be checked against the relevant register, such as the ASIC Training Register, for confirmation before your enrolment will be processed. 8
Already Enrolled Where are my training materials? The hard copy training materials are dispatched within 5 business days of your enrolment being processed. You can access an electronic copy of the training materials through MYOL as soon as your enrolment is processed. Where can I access my materials online? You can access an electronic copy of the training materials through the Professional Development section of MYOL. I want to cancel / withdraw my enrolment what do I need to do? If you wish to cancel your enrolment, you will need to download the Cancellation Form from www.cpaaustralia.com.au/rg146 You can then submit your completed form to rg146cpd@cpaaustralia.com.au for processing. NB: A refund of enrolment fees will only be granted in specific circumstances, as outlined in the following question. Can I get a refund? If you cancel your enrolment, you will only be eligible for a refund if: CPA Australia RTO withdraws the module or program, or you are suffering from a terminal illness or injury which prevents you from completing the module, as evidenced through supporting medical documentation. Refunds will not be granted where an enrolment is cancelled due to: change of mind change of employment or working hours relocation financial hardship, or retrenchment, although a deferral may be granted. All other requests will be assessed on a case by case basis by the CPA Australia RTO Working Group. 9
Assessment How long does the assessment process take? Once you submit your written assignment, the marking process will take approximately 10 business days (2 weeks). If your written assignment is marked Competent (C), the assessor will then contact you to either arrange a time to complete the oral assessment. If the written assessment is deemed Not Yet Competent (NYC) upon the first marking, you will have 4 weeks to rework your assignment and resubmit How do I find my assessment date? Your assessment due date is on your confirmation of enrolment letter, sent with your hard copy materials. Can I defer my assessment due date? / Different types of deferrals You are entitled a maximum of 2 deferrals per module. Workshop enrolments: 6 week deferral of your assessment due date (per deferral) Distance Learning enrolments: 3 month deferral of your assessment due date (per deferral) Fees (workshop and distance): First deferral: $100 Second deferral: $200 Any further requests for deferral will be assessed on a case-by-case basis. A change in workload, holiday or redundancy would not be considered as grounds for further extension. How are the modules assessed? Each module is assessed via a written assignment and an oral assessment (conducted over the telephone with an assessor) regardless of whether you complete the module via distance learning or workshop. How do I submit my assignment? You submit your written assignment by emailing it to rg146cpd@cpaaustralia.com.au. You must ensure that you follow the instructions for preparing your assignment documentation, including the completing and submitting the Assessment Cover Sheet. You can find a copy of the Assessment Cover Sheet in My Online Learning. Failure to follow these instructions may result in your assignment being returned for correction. Incomplete assessments will also not be accepted for marking. 10
When will I receive my certificate? You will receive a Statement of Attainment and an Academic Transcript when you successfully complete each module. On successful completion of module 1 and module 2 you will be awarded the FNS50615 Diploma of Financial Planning. If you are a member of CPA Australia, you have the opportunity to collect your Diploma certificate in person by attending a CPA Australia Certificate Presentation Ceremony. Alternatively your certificate can be sent by post. Non-members will be sent their Diploma certificate by post. How do I receive my results? You will receive an email from the assessor advising of the outcome of your written assessment. If your written assessment is marked Competent (C), the assessor will schedule a time to complete your oral assessment. If the written assessment is deemed Not Yet Competent (NYC) on the first marking, you will have 4 weeks to rework your assignment and resubmit. Upon successful completion of both assessment components CPA Australia will send you a confirmation letter, Statement of Attainment, Academic Transcript and other relevant documentation. What happens if I fail? If you are marked Not Yet Competent (NYC) after the second marking, you can resubmit a new assignment for marking. You may resubmit a new assignment or re-sit an oral assessment to address areas of concern after their original submission. Additional fees and charges apply for resubmission. 11
Licensing I don t want to be a financial planner, I just want to provide SMSF advice. What do I need to do? The accountants licensing exemption, Regulation 7.1.29A, currently permits a recognised accountant to recommend a client establish or wind up an interest in an SMSF without being licensed under the Australian Financial Services (AFS) licensing regime. From 1 July 2016 if you wish to provide this advice must be appropriately licensed, either as an authorised representative of another entity s AFS licence or through holding their own limited AFS licence. A range of other superannuation and SMSF advice and services also require you to be licensed, as outlined in our new fact sheet (PDF). In order to become licensed to provide this advice, you must complete recognised training that meets the training standards set by ASIC in Regulation Guide 146 Licensing: Training of financial product advisers (RG146). For further information on the licensing options refer to Information Guide: Accountants exemption reform. How do I become licenced? The term 'licensed' refers to AFS licensees and representatives or authorised representatives of AFS licensees. If you are a new entrant will first need to operate under an existing AFS licensee as either a representative or authorised representative of an AFS licensee. This is because there is an experience requirement you must meet before you are eligible to apply for your own AFS licence. If you are a recognised accountant and hold a public practice certificate with one of the three professional accounting bodies, you are eligible to apply for your own limited AFS licence under streamlined transitional provisions until 30 June 2016. To apply for the limited AFS licence, you must meet a range of requirements and submit a licence application to ASIC. For further guidance refer to www.cpaaustralia.com.au/smsfadvice Do I apply to CPA Australia to become licensed? If you are applying for a limited AFS licence, you must submit your application to ASIC. There are a range of requirements that you must meet before you will be ready to submit. For further guidance refer to www.cpaaustralia.com.au/smsfadvice If you are applying to be a representative or an authorised representative, you must apply directly to the prospective AFS licensee of your choice. Considerations when selecting an AFS licensee has been developed to assist members select an AFS licensee and can be accessed at www.cpaaustralia.com.au/smsfadvice 12
I want to be an authorised representative, what do I do? If you are going to be licensed as an authorised representative, you should check with your prospective AFS licensee what training you are required to complete to meet their requirements. The RG146 Compliance Solution offers a Tier 1 training solution and will likely meet the training requirements set by your prospective AFS licensee. How does the SMSF Specialisation fit into the RG146 Compliance Solution program? The University of New South Wales (UNSW) SMSF Specialist Workshop which is the education requirement of the CPA SMSF Specialisation, awards successful candidates compliance in the RG146 specialist knowledge areas of superannuation and SMSFs. A candidate would not have to complete Module 4. Superannuation or the Advising in SMSFs assessment from the RG146 Compliance Solution program if they already completed the UNSW course. NB: Successful completion of the RG146 Compliance Solution program will not meet the education requirements for the CPA SMSF Specialisation. See www.cpaaustralia.com.au/smsfspecialistion for more information. 13