A financial planner is somebody that offers personal advice to individuals and smaller businesses regarding financial strategies and products in areas like superannuation, investment, insurance and private financial management.
To practice like a financial planner, a person must both;
Operate under an Australian Financial Services Licence (AFSL), either like a licensee or as a representative of the licensee, and be capable of practice
Australian Financial Services Licence (AFSL)
Licensees might be individuals or even companies, so a person providing financial planning services can pick to:
Apply for any license either personal or a company these people control, or
Operate being an employee or authorized representative of one more license. Large institutions like banks and insurance companies that provide financial planning services maintain licenses, someday authorizing a huge selection of smaller corporate or even individual financial planning practices to do something as representatives below their licenses.
Due to the difficulties and price of replicating the support offered by large licensees as well as meeting tedious compliance obligations, new entrants towards the profession are often best advised to start by serving as an authorized representative. Even large, effective practices often don’t discover the proceed to keeping a license justifiable.
Proficiency
One is skilled when they have either;
Completed a training course (or courses) that is from ASIC’s training register (find: http://www.asic.gov.au) or
been assessed as being skilled by an authorized assessor. This last option is only open to individuals with relevant business experience.
Observe that there aren’t any other choices. One consequence is the fact that someone who has related industry experience and that has finished training that isn’t listed on ASIC’s register can go for assessment and also have that training taken into consideration. An individual who doesn’t have business experience, however, doesn’t have option apart from to accomplish courses which are listed on the register, it doesn’t matter what other skills they might hold.
The courses or even assessments that are completed must cover;
Generic understanding of financial markets and products, and
specialist understanding and advisory skills for every of the specific areas (“Content Areas”) by which advice will be provided, like:
Financial planning
Securities
Managed investments
Superannuation
Insurance-general and life
A financial planner will have to finish a course (or courses) which covers many of these areas, while an insurance adviser, for instance, will simply need to develop a course (or courses) which covers common knowledge as well as insurance.
Financial planners who recommend in other specialist areas, like derivatives or foreign exchange, will have to complete courses covering those areas too.
Some areas, particularly direct property, that is included in State licensing laws, are not included by RG146. Nevertheless, suggestions about property based securities like REITs is caught, as is advisable towards securities/superannuation etc. in favor of property. Producing financial plans that variety more broadly than suggest that is strictly restricted to property also needs authority under an AFSL licence as well as compliance along with RG146.
Read more at – medium.com/@afsllicence
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