The Australian Securities and Investments Commission (ASIC) is consulting on regulatory guide changes to support reforms lifting advisers’ education, training and ethical standards.

Australian financial services licence applicants currently have five options for demonstrating the knowledge and skills of responsible managers.

Under the proposed changes a sixth option would reflect new education and training requirements and would need to be met by at least one responsible manager.

The requirements include completion of a financial adviser exam, an appropriate degree and continuing professional development.

The manager would also need three years of relevant experience over the past five years.

“Our proposals are designed to strengthen the organisational competence of financial advice licensees by ensuring advisers are supervised by at least one responsible manager who satisfies the new education and training standards,” ASIC Commissioner Danielle Press said.

The Financial Adviser Standards and Ethics Authority has been set up to oversee new training and ethical standards.

The new rules also propose a “professional year” for advisers still completing their training.

Submissions on ASIC’s consultation paper are due by December 6. An updated Regulatory Guide 105 is expected early next year. View the consultation paper here.