AFS Licensees have an obligation to ensure that their 𝒓𝒆𝒑𝒓𝒆𝒔𝒆𝒏𝒕𝒂𝒕𝒊𝒗𝒆𝒔 are adequately trained & are competent (s912A(1)(f) Corps Act)
𝗪𝗵𝗼 𝗶𝘀 𝗮 𝗿𝗲𝗽𝗿𝗲𝘀𝗲𝗻𝘁𝗮𝘁𝗶𝘃𝗲?
Representative means (s9):
– an authorised representative of the licensee;
– an employee or director of the licensee;
– an employee or director of a related body corporate of the licensee; &
– any other person acting on behalf of the licensee.
𝘼𝙎𝙄𝘾’𝙨 𝙚𝙭𝙥𝙚𝙘𝙩𝙖𝙩𝙞𝙤𝙣𝙨
ASIC expects licensees to:
(a) identify the knowledge & skills your representatives need to competently provide the financial services;
(b) ensure they have the necessary knowledge & skills;
(c) ensure they undertake continuing training programs to maintain & update their knowledge & skills; &
(d) maintain a record of the training they have undertaken (this is required under reg 7.6.04(1)(d)).
As you will observe, training is an ongoing obligation.
𝙏𝙧𝙖𝙞𝙣𝙞𝙣𝙜
Most firms adopt a CPD approach to training. However, in order to meet the obligation, representatives must be trained in financial services laws & in the specific financial services & insurance products offered.
Simply attending functions or events to obtain CPD points may not satisfy the AFSL obligation. The training must have a connection with your authorised financial services.
ASIC has specified minimum training for representatives who provide financial product advice to retail clients (RG 146):
Tier 1 products – personal sickness & accident, CCI;
Tier 2 – all other general insurance products.
𝘾𝙤𝙢𝙥𝙚𝙩𝙚𝙣𝙘𝙚
Competence includes skill, knowledge & experience. The competence must be aligned to the financial services (such as claims handling or insurance broking) & the products provided.
Generally role descriptions, qualifications, short industry courses, on the job training & professional membership (ANZIIF, NIBA) are indicators of competence however on-going training is required to ensure professional development & remaining relevant.
𝙏𝙧𝙖𝙞𝙣𝙞𝙣𝙜 𝙨𝙥𝙚𝙘𝙞𝙛𝙞𝙘𝙖𝙡𝙡𝙮 𝙛𝙤𝙧 𝙥𝙚𝙤𝙥𝙡𝙚 𝙬𝙤𝙧𝙠𝙞𝙣𝙜 𝙞𝙣 𝙜𝙚𝙣𝙚𝙧𝙖𝙡 𝙞𝙣𝙨𝙪𝙧𝙖𝙣𝙘𝙚
I have developed training options, specifically for general insurance, to assist in meeting your AFSL obligations:
I provide training services to businesses:
a) Facilitated training on financial services laws, Industry Codes, Responsible Managers; &
b) Design of in-house tailored compliance training modules.
Check out ‘Compliance Education & Training’ under the ‘Services’ tab on my website (link below)
I provide training services to individuals:
a) Compliance workshop in Brisbane 21st Mar
b) Monthly virtual financial laws training: next course 14th Mar
c) Membership subscription
Click below & go the tabs ‘Training’ & ‘Membership’ to learn more & register