SAFAA Professional Diploma in Stockbroking

To find out more information about the Stockbrokers And Financial Advisers Association (SAFAA) Professional Diploma in Stockbroking

SAFAA Professional Diploma in Stockbroking (Prof. Dip. Stock.)

The SAFAA Professional Diploma in Stockbroking is designed for stockbrokers and financial advisers. It is Australia’s only professional qualification in stockbroking.

The SAFAA Professional Diploma in Stockbroking is the standard that employers, regulators, and the investing public expect from individuals who are employed within institutional and retail stockbroking firms. For experienced practitioners, it offers the opportunity to formalise their knowledge, skills and industry experience with a recognised, professional qualification.

For new entrants, or those aspiring to become members of this industry, the Professional Diploma in Stockbroking provides the foundation for competent and ethical entry-level performance in the workplace. Graduates will develop detailed knowledge of the securities and derivatives industry, gain a broad understanding of the finance and investment sector and the products that are integral to it.

The SAFAA Professional Diploma in Stockbroking is made up of a mandatory ‘Core’ Accreditation and one ‘Elective’ Accreditation. Upon successful completion candidates receive the Stockbrokers And Financial Advisers Association Professional Diploma in Stockbroking. Further, individuals will receive Continuing Professional Development (CPD) hours for completion of each Accreditation.

 

Core 1: Securities & Managed Investments Accreditation

The Stockbrokers And Financial Advisers Association Core 1 Securities & Managed Investments Accreditation provides candidates with the specialist knowledge and skills necessary to provide financial product advice to retail clients in Securities and Managed Investments. This accreditation focuses on the relevant market participants, product types, characteristics and applications. It looks in-depth at asset classes and their use in investment portfolios, reviews investment manager styles and the use of alternative investment strategies and benchmarks. Candidates are introduced to basic techniques for analysing product performance and making investment and trading decisions in relation to product types. The benefits and risks associated with the different securities and managed investment products are explored. The regulatory nd taxation issues affecting the use of securities and managed investment products are outlined.

The Core 1: Securities and Managed Investments Accreditation also introduce candidates to the skills requirements for retail client advisers under (the former) ASIC RG146 requirements. Candidates learn techniques for identifying and analysing client needs and objectives, developing a client risk profile, conducting relevant research and developing appropriate investment strategies to meet client’s needs using securities and managed investment products. For experienced client advisers, this section of the Core 1 Accreditation provides a useful refresher in preparation for the Statement of Advice to be completed as part of the assessment.

 

Elective Accreditations:

There are currently five elective accreditations available:

Accredited Derivatives Adviser – Level 1 (ADA 1)

Accredited Derivatives Adviser – Level 2 (ADA 2)

Superannuation Accreditation

Margin Lending Accreditation

Foreign Exchange Accreditation

 

Accredited Derivatives Adviser – Level 1 (ADA 1)

The subject content in this accreditation examines in detail the derivatives sector of the finance and investment industry and the range of market participants and product types. The characteristics and uses of various derivative products are considered in-depth in order to determine their suitability and application in a wealth creation strategy. The regulatory and taxation environments affecting the use of derivatives products are outlined also.

The accreditation of advisers who advise on derivatives traded on the Australian Securities Exchange is a requirement set out in Part 2.4 of the ASIC Market Integrity Rules (Securities Markets) 2017. There are two levels of accreditation.

Advisers accredited at Accredited Derivatives Adviser – Level 1 (ADA 1) are allowed to advise on:

  • taking options
  • selling options to close out a taken position
  • subscribing for and buying and selling warrants
  • exercising warrants and options
  • writing covered call options (i.e. where the client owns, or at the same time as writing the calls buys,  the underlying shares and lodges those shares with ASX Clear.)

 

Accredited Derivatives Adviser – Level 2 (ADA 2)

Accreditation is required if an adviser advises on:

  • writing options (other than for the purposes of closing out a taken position, or writing covered calls)
  • taking or writing LEPOs.

 

Superannuation Accreditation

The Stockbrokers And Financial Advisers Association’s Superannuation Accreditation provides candidates with the specialist knowledge and skills necessary to provide financial product advice to retail clients in superannuation. The accreditation content examines the development of superannuation together with the legislative basis, the industry structure and market participants.  This is followed by an examination of the investment rules and tax basis of superannuation – often the key features of a superannuation fund as far as clients are concerned.

Advisers need to take care with advising clients to put money into superannuation (contributions) and taking money out (though lump sums or pensions).  Particular focus is given to small funds and those funds where there may be direct equity investments.  Superannuation is a major plank in the Government’s policy to make Australians more self reliant in retirement and the final topic examines retirement planning and the interaction of superannuation with the social security system.

 

Margin Lending Accreditation

Margin Lending is now explicitly included as a financial product for the purposes of Chapter 7 of the Corporations Act.

Defining margin lending as a financial product has a range of consequences, including that providers of financial services in relation to margin loans are now subject to the licensing, conduct and disclosure requirements in Chapter 7. 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.

The Stockbrokers And Financial Advisers Association’s Margin Lending Accreditation meets all ASIC requirements. The Margin Lending Accreditation covers: Gearing; Margin Lending; Alternative means of achieving geared exposure; Tax deductibility of the interest; Franked dividends; and Capital Gains Tax as well as Compliance topics.

 

Foreign Exchange Accreditation

Advisers who provide advice on foreign exchange must meet training requirements under Regulatory Guide 146 Licensing: Training of financial product advisers (RG 146).   Foreign exchange is classed as a Tier 1 product in RG 146.

An adviser who provides advice on Tier 1 products to retail clients 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 Stockbrokers And Financial Advisers Association’s Foreign Exchange (FX) Accreditation is designed not only for advisers with retail clients, but advisory staff that also deal with wholesale clients – not institutions, but high net worth individuals who would be classed as sophisticated investors, and who deal in some of the products that would not normally be traded by retail investors – such as spot transactions, forwards and currency options. This is covered in the accreditation course.

The FX Accreditation covers FX markets, FX exchange products, taxation, and compliance.

 

Accreditation Enrolment Fees Assessment details Suggested Study Hours per Accreditation  Continuing Professional Development (CPD) hours may be claimed in the following FASEA CPD areas:
Core 1

$790 Ind. Member

$790 Org. Member

$990 Non-Member

1 x Assignment (80% passmark)

1 x Online Exam

(Closed Book, 60 questions, 2hrs + 15 min reading time, 70% passmark)

Allow up to 150

Hours

25 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (5 hours)
  • Client care and practice (5 hours)
  • Regulatory compliance and consumer protection (5 hours)
  • Professionalism and ethics (9 hours)
  • General (1 hour)
Superannuation

$470 Ind. Member

$490 Org. Member

$520 Non-Member

1 x Assignment (80% passmark)

1 x Online Exam

(Closed Book, 25 questions, 1hr + 15 min reading time, 80% passmark)

Allow up to 150

Hours

20 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (10 hours)
  • Regulatory compliance and consumer protection (5 hours)
  • General (5 hours)

Accredited Derivatives

Adviser Level 1

(ADA 1)

$370 Ind. Member

$380 Org. Member

$390 Non-Member

1 x Assignment (80% passmark)

1 x Online Exam

(Closed Book, 60 questions, 2hrs + 15 min reading time, 80% passmark)

Allow up to 150

Hours

20 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (10 hours)
  • Regulatory compliance and consumer protection (5 hours)
  • General (5 hours)

Accredited Derivatives

Adviser Level 2

(ADA 2)

$320 Ind. Member

$330 Org. Member

$340 Non-Member

 

 

1 x Online Exam

(Closed Book, 50 questions, 2hrs + 15 min reading time, 80% passmark)

Allow up to 150

Hours

20 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (10 hours)
  • Regulatory compliance and consumer protection (5 hours)
  • General (5 hours)
Foreign Exchange

$470 Ind. Member

$490 Org. Member

$520 Non-Member

1 x Online Exam

(Closed Book, 40 questions, 1.5hrs + 15 min reading time, 80% passmark)

Allow up to 90

Hours

10 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (5 hours)
  • Regulatory compliance and consumer protection (4 hours)
  • General (1 hour)

Margin

Lending

$280

 

1 x Online Exam

(Open Book, 40 questions, 1.5hrs + 15 min reading time, 80% passmark)

 

Allow up to 90

Hours

10 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence (5 hours)
  • Regulatory compliance and consumer protection (4 hours)
  • General (1 hour)

Margin

Lending +

ML Skills

$370 Ind. Member

$380 Org. Member

$390 Non-Member

 

 

1 x Online Exam

(Open Book, 40 questions, 1.5hrs + 15 min reading time, 80% passmark)

1 x Assignment

Allow up to 130

Hours

20 CPD hours may be allocated in the following FASEA CPD areas:

  • Technical competence(10 hours)
  • Regulatory compliance and consumer protection (5 hours)
  • General (5 hours)

 

How does the accreditation process work?
Accreditations are administered for us by Western Sydney University The College RTO (The College), a division of Western Sydney University.  Please note: enrolments close at 3.00pm every Thursday Sydney time.

  • Candidate enrols online/registration is received
  • Candidate receives Confirmation email from SAFAA acknowledging enrolment, and that WSU The College will send details the following Friday
  • Candidate receives Welcome email from WSU The College on Friday with all accreditation information/materials
  • Candidate completes and returns Exam Booking Form to book in their exam day/time. This must be done at least 2 days prior to exam
  • WSU The College releases exam/closes exam at designated day/time
  • The Candidate’s approved Supervisor supervises exam, and returns the Declaration by Exam Supervisor to WSU The College
  • Candidate receives result (results are issued end of each day). Candidate receives Certificate (Certificates are issued end of each month, following receipt of Declaration by Exam Supervisor).

Useful downloads

Please go to each accreditation page to enrol directly online.

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

Online Terms and Conditions

 

All enquiries & applications should be directed in the first instance to:

Stockbrokers And Financial Advisers Association (ACN 089 767 706)

Level 6, 56 Pitt Street, Sydney NSW 2000

Telephone: (02) 8080 3200

Fax: (02) 8080 3299

Email: education@stockbrokers.org.au

 

Enrolments close at 3.00pm every Thursday Sydney time.