Diploma of Financial Services (RG146/PS146)

[robusta]

They do exist Robusta, mainly as boutique firms, but there are many out there. Generally they charge an hourly fee and have no affiliations with any particular products etc.

More and more of them emerging too as people begin to realise how trailling commissions work

Thankyou prawn this interests me as a career change. Do you think it would be possible to set up like this on your own.
I think it would give a individual advisor an competitive advantage to be able to say they are totally independant.

 

[prawn_86]

Do you think it would be possible to set up like this on your own.

Anything is possible. However aside from being RG146 compliant, you also need to operate under an AFSL (Aus Financial Services License), as others have mentioned. This means you would need to obtain a new licence (expensive and time consuming) or pay to be 'loaned' one. Im not too sure of the exact details.

This means you need to have complaince procedures et al in place when operating under an AFSL so doing it alone would be no easy task.

And from a marketing perspective you would need to provide solid (probably audited) proof to your potential clients to prove they should trust you over any other planner.

So yes, you could do it, but it wouldn't be easy

 

[Julia]

If someone wants to be a financial adviser and is asking for advice on compliance and qualifications (RG146), then let them be. I would stay on topic and just focus on the qualifications, rather than going off topic about the virtues of financial planners and whether or not it's the right career choice.

I disagree. Robusta's enquiry is imo well within the scope of the topic and is a realistic question, given the growing public distrust of financial advisers who are linked to a commission based product.

Robusta, if you were to acquire the qualifications necessary plus the appropriate licence, what would be your aim in having your own business?

 

[robusta]

I disagree. Robusta's enquiry is imo well within the scope of the topic and is a realistic question, given the growing public distrust of financial advisers who are linked to a commission based product.

Robusta, if you were to acquire the qualifications necessary plus the appropriate licence, what would be your aim in having your own business?

To help people (myself included) to achieve financial independance. Many people bury their heads in the sand when it comes to money if I can help them with ; debt reduction, tax, investing, estate planning, super... all subjects that interest me and be paid for it!! Well that would be my dream job.

I like the idea joining these guys http://www.superguide.com.au/the-so...y-independent-financial-advisers-in-australia.

The other problem I have is I do not have a undergraduate degree (but would be prepared to get one) so becoming a CFP would take a while as I would have to study part time while supporting my family.

 

[loserboy]

has any one completed their rg146 thru stockbrkers.org.au? if so, is it any good?

 

[Junior]

I just read my post made in 2010 about the industry moving in the right direction.

It's moved ever so slightly in the right direction, but I fear that may have stalled for now.

Pros:
* Upfront commissions on investment products are a thing of the past, which is a positive step.
* The emergence of ETFs and competitively priced platforms/retail super funds are also a positive.

Cons:
* Still 80% controlled by big banks, still flogging their own products. Primary focus is still on selling products rather than selling advice/strategy.
* Minimum educational requirements haven't improved.

 

[kahuna1]

has any one completed their rg146 thru stockbrkers.org.au? if so, is it any good?

Well its a kaplan run thing if its the one I once looked at. so its not bad, and quick and online on the main. It depends how far your want to go, the top end of the heap is a serious financial planning one which will cover it all.

Its basic the Kapaln one and then one can do a whole load of others to upgrade from a derivatives type one up to various other levels way above it.

It depends on what you want or need it for. Having an RG 146 is the basic standard of the industry and someone with not much knowledge could take 9 months to do it part time, someone with a lot of experience can do it in 2 months and it will take them longer to MARK the exams than it takes you to do it.

That ASIC requires it is one thing, but its who or whom you work for or are you going for an AFS license or whatever. If you work for some group despite working in the ministry for 30 years and being RG 146 compliant at one bank you go to another and they can force you to do some course that is silly all over again. Even the cost of getting prior knowledge recognized actually works out to MORE than the course cost itself ... so its quicker and easier just to bloody do it.

Eventually you become a member of the Stockbrokers of Australia if that's the one your looking at ? On top of that maybe a graduate diploma in stockbroking depending on how many courses you do above the basics. I think the financial planners one is better but since neither of them really interested me I ended up just jumping the hoops placed in front of me and getting the professional diploma in stockbroking and RG 146 compliant along with derivatives 2 or 3 the highest one, margin lending and a few other goodies I just sat the test not bothering to buy the paperwork.

Despite having post grad masters in banking and in finance and in economic and in accounting, NONE were recognized by Kaplin when I had to sit it, neither were licenses as the ASX !! Ones that were valid and operating since 1990 over 20 years, were not recognized and as such I do understand the need to have people trained and compliant, when I needed them, my organization for a very brief time insisted I get them and then did not recognize anything. Even had a believe it or not one from the AMFA the Australasian Financial markets association which was many levels above RG 146 ... but like the rest not counted. Oh I forgot I did the ASX ones themselves for grads back in the 1980's ... nope none of that counted towards anything either via Kaplin or my very brief association with a stockbroker.

So you could teach the course and NOT be recognized as being qualified via previous experience, not knowing what you want it for or who or whom is requiring you to do it, makes a difference.

If anything a MBA is time better spent, but you will find out as I sadly did they include a 3 rd rate uni as being counted but one from say Columbia Business School in new York does not count.

Weirdest thing of all< ASIC itself had me on its register since 1984 as being compliant in several things up to RG 146 and well above, yet had to get more prices of paper. Not by ASIC, they were quite happy with my background and training, it was via the pencil pushers ...

Hope some of it helps.

Do the MBA short answer, see which ones are accepted in credit to RG 146, Likely Macquarie and Sydney and Monash. Go heavy on the electives of where your heading and go from there. Will take the same time if your going to be serious about it, 2 years.

On top of this ongoing education is a thing for any RG 146 one must be able to prove your up to date with issues. Post the recent changes they have GONE insane with paperwork and what is GENERAL advice and what is specific advice. Ona chat site, not being paid I can go this share is great BUY it. If a stockbroker does not know his clients fiances down to the last minute, his goals and even then if he knows it giving specific advice to buy or sell the laws have become such a mess that unless your a professional investor where the rule do NOT apply as your savy enough NOT to need them, the poor bugger whom you try and steer the right way can actually come back of the stock goes down and make the broker life interesting claiming they were not told this or that.

Its gone a bit mad, some if not most need help, but giving even well meaning advice is now a thing that brokers asked by someone with $50,000 where to invest more than likely if they had a brain would RUN away from for the mere $200- they earn if they are lucky in brokerage, the fact is that the way the laws are going you may have 2,3,4 come back and try and cry because they bought a share and it went down !! Even if the whole market crashed.


Meanwhile in GFC central in the USA no one went to jail or was seriously hit for what were some of the most out of control recommendations ever seen or given leading up to the GFC. same happened here and hence the tightening but still some people put into funds, leveraged ones where the broker got 2-5% commission for selling the rubbish to you, about 12 months latter in the GFC they crashed wiping 99% of the value never to come back, still like the USA none of the people who set these things up even here got touched or looked at. It was legal.

Such is life