Margin Lending Accreditation

There are two Margin Lending Accreditations:

  1. Margin Lending Accreditation – this is a 1.5 hour online exam (+ 15 minutes reading time. 40 multiple choice questions, 80% passmark).  This accreditation meets the training requirements under ASIC Regulatory Guide RG146 to provide retail advice in specialist knowledge for Margin Lending at a Tier 1 level; and
  2. Margin Lending Skills Accreditation – this is a Case Study Assignment that meets the “Skills” component for ASIC Regulatory Guide RG146 (in Margin Lending) at Tier 1 level.

Margin lending providers must ensure that their representatives are adequately trained and competent.

Advisers on margin lending must fulfil the training requirements under Regulatory Guide 146 ‘Licensing: Training of financial product advisers’ (RG 146). RG 146 sets out minimum standards for the training of all advisers, and has been updated to include margin lending as a Tier 1 product.

An adviser who provides advice on Tier 1 products must undertake:

  • training in generic knowledge of the environment in which the products operate, and
  • specialist knowledge training on the financial products on which advice is provided.

The Margin Lending Accreditation is intended to provide specialist knowledge training for advisers providing advice on margin lending facilities, as set out in Appendix A2 of RG 146.

If an adviser provides personal advice, they are also required to complete approved training courses covering relevant skills.

The Margin Lending Skills Accreditation is intended for those candidates who have already completed courses on ‘providing advice in …’ other financial products such as securities, managed investments, derivatives and/or superannuation. Candidates should be familiar with the advice giving process already. The focus of the Margin Lending Skills Accreditation is the advice giving process – not the bigger picture of being a licensee and complying with legislative requirements. Most of the detail is about the skills of giving advice – fact finding, setting objectives, evaluating products, justifying solutions, presenting solutions and negotiating outcomes.

Continuing Professional Development (CPD)

The Margin Lending Accreditation provides 10 FASEA CPD hours to candidates. The Margin Lending Skills provides 10 FASEA CPD hours to candidates. See breakdown for FASEA areas:

FASEA CPD Area Margin Lending Accreditation Margin Lending Skills
Technical  competence 5 hours 5 hours
Regulatory compliance and consumer protection 4 hours 4 hours
General 1 hour 1 hour
Total Hours 10 hours 10 hours

 

Regarding RG146 CPD, candidates may claim 10 hours of CPD in Generic, Securities and/or Margin Lending, and including up to 6 hours of Compliance CPD for completing Margin Lending Accreditation.

Learning outcomes

The Margin Lending Accreditation covers the areas of:

  • Gearing
  • Margin Lending
  • Alternative means of achieving geared exposure
  • Tax deductibility of the interest
  • Franked dividends
  • Capital Gains Tax
  • Compliance topics

Is there any assumed pre-requisite knowledge?

There is no assumed knowledge for this accreditation.

Please ensure that the course you intend to enrol in is one you are required to undertake and are committed to completing, as fees are non-refundable. Substitutes are welcome within the enrolment period.

Assessment details

Margin Lending Accreditation:

1 x Online Exam (Open or Closed Book, 40 questions, 1.5hrs + 15min reading time, 80% pass mark)

Margin Lending Skills Accreditation:

1 x Assignment (Case Study, 80% pass mark)

Suggested study hours

Margin Lending Accreditation: Allow up to 120 hours

Margin Lending Skills Accreditation: Allow up to 120 hours

How does the accreditation process work?
Accreditations are administered by the Stockbrokers and Financial Advisers Association (SAFAA). Enrolments close at 3.00pm every Monday Sydney time.

  • Candidate enrols online/registration is received.
  • Candidate receives Welcome email from SAFAA on Tuesday with accreditation information/study materials.
  • Candidate completes and returns ‘Exam Booking Form’ to schedule their exam day/time. This must be done at least 3 days prior to exam.
  • SAFAA releases exam/closes exam at designated day/time.
  • The Candidate’s approved Supervisor supervises exam and returns the ‘Declaration by Online Exam Supervisor’ to SAFAA. Results will not be released until SAFAA has received the completed ‘Declaration by Online Exam Supervisor’.
  • Candidate receives result (results are released within 1 working day). Candidate receives Certificate (Certificates are issued end of each month).

Useful downloads

 

Supervisor Guidelines

SAFAA/WSU The College Exam Booking Form (to be completed and returned by candidate at least 2 days prior to them sitting their online exam)

Summary of assessment

Cancellation and refund policy

Enrolments close at 3.00pm every Monday Sydney time.