The Benefits of Responsible Manager Training - What Every RM Should Know!

Responsible Managers have an important role in overseeing the operations of an Australian Financial Services Licence. While there are no formal CPD requirements to undertake this role, it is crucial that every individual in this role has a thorough understanding of the obligation to maintain organisational competence, as set out in ASIC Regulatory Guide 105.

There are multiple ways organisational competence can be demonstrated but however it’s done, RMs should ensure their understanding of the Australian financial services landscape, the ever changing regulatory environment and how these impact on the day to day operations of the AFSL.

Today, we will explore why Responsible Manager training is an important tool for every RM.

RELATED: What is a Responsible Manager?

Maintaining Organisational Competence

Every AFS licensee must maintain the competence to provide the financial services covered by the licence. This is demonstrated through the work of the Responsible Managers by:

• making day to day decisions about the ongoing provision of financial services;
• having appropriate skills and knowledge for all the services and products; and
• demonstrating appropriate skills and knowledge.

Responsible Managers should consider whether they have the enough time available to fulfil their responsibilities.

In terms of demonstrating the RM’s skills and knowledge, the AFSL or the RM may consider maintaining a training register of any courses or activities they have undertaken to keep up to date with changing laws and regulations. However the AFSL does this, ASIC expects that it will have measures in place to maintain its organisational competence at all times, which includes maintaining the skills and knowledge of the RM.

Understanding the regulatory framework

Although not specifically set out in RG105 as part of the required skills of an RM, an important part of the RM’s role is to have a thorough understanding of the AFS licensing regime, how to develop and maintain a robust compliance framework and how to demonstrate the frequent monitoring and supervision of the representatives who are providing financial services under the licence.

Keeping up to date with the regulatory landscape

One of the important reasons that every RM should undertake regular training is to ensure they are kept informed and up to date with industry and regulatory changes, and also have a good understanding of how any change may affect the day-to-day operation of their Australian Financial Services Licence and it provides financial services.

Risk mitigation

Staying up to date with regulatory changes and industry updates can play an important part in the AFSL’s risk management strategy.

Required by ASIC

When granting new AFSLs, ASIC regularly requires the newly appointed Responsible Managers to undertake Responsible Manager Training as part of their licence conditions. This is generally required to be undertaken within the first six months of operation of the licence.

Why 3Lines’ RM Bootcamp?

Every AFSL needs its Responsible Managers to be knowledgeable, skilled and competent to stay on top of the licence's regulatory obligations. 3Lines' RM Bootcamp equips RMs and other key stakeholders with the skills they need to stay ahead of the game.

3Lines' RM Bootcamp is a virtual set of 9 lessons, allowing you to self-pace without the worry of missing a beat or interfering with BAU.

Our bite-size modules are practical and engaging, meaning you can use the lessons as a tangible guide as and when required.

Whether you're an RM, a licensee, or an adviser, this course is for you. We've designed it to be relevant to a wide audience and to guide your practice in working more efficiently and effectively.