As a result of recent rule changes, Part 2.4 of the Securities Markets Rules, that deals with numerous requirements and processes for the accreditation and registration of market participants advising retail clients in relation to derivatives, has been repealed in its entirety.
ASIC has explained that it considers the derivatives accreditation regime has largely been superseded by the Professional Standards for Financial Advisers (for those who provide personal advice to retail clients) and by the provisions of the Corporations Act that require licensees to ensure that their representatives are adequately trained and competent (for those advisers who do not provide personal advice).
ASIC has existing guidance in place for the Professional Standards for Financial Advisers as well as the general obligations of a licensee with respect to minimum training standards that apply to advisers (see Regulatory Guide 146). ASIC has advised that it will update Regulatory Guide 265 Guidance on ASIC market integrity rules for participants of securities markets to cross-refer to that existing guidance and set out its expectations for the standards of training and competency of derivatives advisers who provide personal advice to retail clients. ASIC strongly encourages derivatives advisers to continue taking specialist derivatives training courses in order to be suitably trained and qualified.
The rule change came into effect on 7 April 2022.
SIAA will continue to provide its specialist derivatives training course. This provides our members with confidence that advisers requiring a competency in derivatives are adequately trained. Back office, compliance staff and DTRs have also in the past obtained SIAA’s’ Accredited Derivatives Adviser (ADA) qualifications to obtain the level of product knowledge necessary to carry out their operational, supervisory and monitoring roles. These staff members are not financial advisers and are not on the FAR. SIAA understands that it is important for our members that all relevant personnel are able to continue to obtain derivative competency qualifications.
Details of SIAA’s specialist derivates training course can be found here.
This article is general information only.