How to Become an Investment Adviser – The PS 146

In order to become an investment adviser you will need to complete a diploma in financial services that satisfies government training qualifications.

The Australian Securities and Investments Commission (ASIC) formulates and oversees the training requirements for financial planners.  ASIC stipulates that in order to successfully complete a course of education, certain standards need to be met.

Additionally upon completion of the appropriate diploma, one should gain satisfactory experience under the watch of a licence holder until such time they are deemed to be ready for full licensing themselves.

The qualification is ideal for anyone looking to become a financial planner or play a financial planning role within a large organisation.  However, this qualification is also suitable for parra-planners who wish to progress into a planning position in the future.

At the end of the course candidates will be able to provide personal advice in investment planning, as well as other products including superannuation or insurance.
ASIC has dictated the requirements in what is known as PS146.

This is the policy developed by ASIC to implement the intention of Regulatory Guideline 146 which make sure that all financial product advises are suitably qualified.

The key intention of the regulation is to ensure that advice given by financial planners or investment advisers is suitable for the purpose it is intended for. Advice is considered to be either general or personal and the regulation imposes obligations on financial advisers in terms of the kinds of disclosures which are required and the level of training that advisors need.

General advice is deemed to be selling a product where no recommendation is made to the customer regarding its suitability. In other words this would cover a situation where the advisor or is acting for the provider of the product.

Personal advice on the other hand is deemed to be advice which recommends a financial service or product after consideration has been taken into account of the customer’s objectives, financial situation and needs.

In these circumstances a financial planner is required to act on behalf of the client and the advisor will need to have completed a mandatory pre-requisite course of education which covers the appropriate aspects of financial planning pertinent to the advice being proffered.

Investment advisors who wish to offer a broad range of advice will need to complete a series of modules which cover things such as insurance, superannuation, and investments.

An investment advisor on the other hand may wish to limit the range of advice offered to clients by specialising in the areas of investment which can include such products as:

• Managed investments
• Securities (shares)
• Foreign exchange
• Derivatives
• Fixed interest products

In order to qualify as a provider of limited advice, your Dealer Group needs to give their prior approval. Once this has been obtained you are free to enrol in the Diploma in Financial Services.