ASIC has opened consultation on a regulatory update that would see FASEA's minimum education requirements imposed on the responsible manager of a licensee.
The regulator has proposed updates to Regulatory Guide 105 that would reflect the professional standards reforms to be dictated by the Financial Adviser Standards and Ethics Authority.
The consultation focuses on the organisational competence of advice licensees with ASIC looking to introduce a new option for demonstrating the skills and knowledge of a responsible manager known as Option 6. The update would require advice licensees to have at least one responsible manager that satisfies Option 6.
Under the option, responsible managers would have to pass the financial adviser exam by 2021, satisfy the degree requirements applicable to existing advisers by 2024 and complete the required CPD.
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ASIC has also proposed that any responsible manager has spent at least three of the last five years in a relevant role.
ASIC commissioner Danielle Press said the additional option reflects the higher levels of competence expected in the industry.
"Our proposals are designed to strengthen the organisational competence of financial advice licensees by ensuring that advisers are supervised by at least one responsible manager who satisfies the new education and training standards," she said.
ASIC has asked stakeholders to provide feedback on the possible financial implications of the proposals in addition to providing feedback on whether the proposals are necessary, which elements should not apply and whether there is a better way to amend the existing organisational competence framework.
Consultation is open until December 6 with a view to publish the update in early 2019.