Tier 1 Margin Lending

RG 146 Tier 1 Margin Lending

Our online course describes the knowledge and skills required to analyse client needs and to deal ethically and professionally in Margin Lending products. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.

To be compliant to provide general advice in Tier 1 Margin Lending, you must also successfully complete Generic Knowledge.

RG146 Tier 1 Margin Lending can be studied as a short industry course under Responsible Manager Nomination Option 3, if this learning is specifically relevant to the sector or products the responsible manager’s role relates to (RG 105.69).

What is Margin Lending

Margin lending is the term for is a loan that allows investors to borrow cash against the value of listed shares or units in managed funds. Borrowed money magnifies both capital gains and capital losses. The higher the proportion of the value of the securities that is borrowed, the higher the risk is to investors.

Characteristics of margin loans

Features of margin loans include:

  • The margin loan can generally be used to buy shares or managed funds.
  • The security for the margin loan is the total investments purchased with both the investor’s money plus the borrowed money.
  • Borrowers can generally specify a fixed or variable rate of interest.
  • Margin loans are almost always interest only loans
  • Investors may be able to take advantage of dollar cost averaging with some gearing products by participating in regular investing plan products.

Program Content

  • What margin lending is and how it works
  • Overview of the Australian margin lending market
  • Characteristics of margin loans and who they might be suitable for
  • How prominent cases of misconduct led to regulation and licensing of margin lending.

Learning Outcomes

What you will learn

  • The concept of gearing or leverage
  • Valuation ratios and other margin lending features
  • Benefits and risks of margin lending
  • Operating margin lending accounts and margin calls
  • Taxation of securities and managed investments
  • Responsible lending, adviser conduct, disclosure and other regulatory matters.

Who is this course for?

  • Participants who require RG146 compliance to provide general advice on regulated Margin Lending products (when completed with Generic Knowledge)
  • Representatives who advise wholesale clients or organisations seeking product-specific team training
  • Refresher training and/or CPD for existing RG146 compliant dealers and brokers
  • Participants seeking to extend their advisory range to include Margin Lending
  • Participants needing to complete a relevant short industry course under Responsible Manager Nomination Option 3

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

On successful completion of RG 146 Tier 1 Margin Lending participants will be awarded a Certificate of Completion.

On successful completion of Generic Knowledge and Tier 1 Margin Lending, participants will be awarded a Certificate of Attainment confirming that they are RG 146 compliant to provide general advice in Margin Lending.

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Frequently Asked Questions

We offer an online, modular approach, allowing you to study and complete one RG146 Tier 1 specialist knowledge area at a time. Our Tier 1 RG146 compliance programs:
  • Delivery: are online – self paced
  • Study time: depends on your current knowledge and experience however we estimate 10-20 hours of study.
  • Duration: up to 16 weeks - however experienced professionals can complete in less time.
To assist AFS Licensees, we follow the syllabus prescribed by the Australian Securities and Investments Commission (ASIC) for each Tier 1 and Tier 2 specialist knowledge area. To meet relevant training standards at the Tier 1 level, you must complete both Generic Knowledge and the specialist knowledge area you intend to provide general advice in. To provide general advice you must be authorised under an AFSL.

ASIC's training standards are sets of knowledge and (in some cases) skill requirements that must be satisfied by advisers before they give advice. Knowledge and skill requirements vary depending on:
  • whether the adviser gives general or personal advice; and
  • what products the adviser gives advice on.
  • Some products are classified as being Tier 1, while others are Tier 2
The knowledge requirements are set out in Appendix A of RG146 and the skill requirements are set out Appendix B.

To get started, either
  • Purchase your course online. (If checking out for your team, you can add multiple courses to the cart.) OR
  • Contact Us to arrange an invoice
Please note: Online orders may take up to 1 business day to be processed and for you to receive your course login details.  

To get started, either:
  • Purchase course/s online. (You can add multiple courses to the cart.) Please note: Online orders may take up to 1 business day to be processed and for your team to receive their course login details.
OR
Contact us for your Corporate Solution.
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence.

You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

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