Division 2The second standard

Part 2—Education and training standards for relevant providers

Division 1—The first standard

Note: See Corporations (Degrees, Qualifications and Courses Standards) Determination 2020 for the currently approved bachelor or higher degree, or equivalent qualifications. The instrument, originally made by the Financial Adviser Standards and Ethics Authority Ltd, was saved by section 1684M of the Act and will continue in force until it is repealed and remade by the Minister.

Division 2—The second standard

2‑30 Approved principles in relation to exams

Under subsection 921B(6) of the Act, each of the principles specified in a provision in this Division is an approved principle for the purposes of exams to be administered by ASIC under subsection 921B(3) of the Act.

2‑35 Principle 1: testing relevant knowledge and skills

(1) This section specifies a principle relating to testing relevant knowledge and skills. (2) An exam must be designed to test whether the person taking the exam has the knowledge and skills covered in subsection (3) at a AQF level 7 as described in Australian Qualifications Framework, 2nd edition (January 2013) published by the Australian Qualifications Framework Council.

Note: On the day this instrument was registered, this publication was available at https://www.aqf.edu.au/.

(3) For the purposes of subsection (2), an exam must cover each of the following knowledge and skills as they apply in relation to financial products: (a) knowledge and skills needed to understand and conform to the requirements of each of the following: (i) Chapter 7 of the Act; (ii) the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006; (iii) the Privacy Act 1988; (iv) Subdivision 50-AA of the Tax Agent Services Act 2009; (b) knowledge and skills needed to be able to apply ethical and professional reasoning, and to communicate effectively, including the ability to: (i) identify the obligations imposed by the Code of Ethics and how to comply with them; and (ii) articulate the importance of codes of ethics and codes of conduct, being guides of principles designed to help professionals conduct business honestly and with integrity, and the need for relevant providers to conform to the Code of Ethics in the context of professional standards; and (iii) apply ethical frameworks to solve dilemmas encountered as a relevant provider; and (iv) identify the importance of, and demonstrate, the duty of a relevant provider to act with integrity and in the best interest of each of the provider’s clients; and (v) identify the need for due diligence and the need to maintain client files and records; (c) knowledge and skills needed to construct suitable financial product advice through an understanding of: (i) the environment in which financial product advice is sought by and given to new and existing clients; and (ii) the need to prevent and avoid misconduct and inappropriate advice; and (iii) population and community profiles of retail clients; and (iv) consumer behaviour and decision‑making; and (v) the advice strategies suitable for different retail clients.