The Australian Securities and Investments Commission (ASIC) plans to scrap its register of approved training courses for financial product advisers and instead hand responsibility to educators and industry bodies.

ASIC authorises training course regulators, and says they are better qualified than it is to assess programs.

It also wants to remove from regulatory guide 146 (RG146) its recognition of foreign qualifications, except for New Zealand.

ASIC has issued a consultation paper proposing to replace the register with a class order allowing registered training organisations (RTOs) and self-accrediting organisations (SAOs) to self-assess their own courses.

RTOs, SAOs and ASIC-accredited professional or industry associations will also be allowed to assess courses delivered by other providers.

Assessors would have to give students certificates verifying courses meet the requirements of RG146. 

Australian and New Zealand Institute of Insurance and Finance CEO Joan Fitzpatrick says the proposal to supersede the register “is not an issue for us”. 

“In terms of the changes proposed, only the poor-quality non-compliant RTOs need have anything to fear. As a high-quality totally compliant RTO, the institute would be happy to see better policing of those allowed to train by ASIC,” she told insuranceNEWS.com.au. 

The institute plans to lodge a submission to the consultation.

Under current arrangements, financial services licensees can check the register to see if a course meets training requirements.

ASIC says the financial services industry has had time to familiarise itself with the training needed, and it is time for the regulator to step back from approving courses.

It proposes that advisers with foreign qualifications be allowed to apply for recognition for up to 50% of an Australian course, or an exemption allowing them to take an individual assessment without holding the five years’ experience outlined in RG146.

Submissions must be made by September 30. ASIC aims to issue an updated RG146 next April.