Derivatives Accreditation

Under ASX Market Rules, an adviser must be accredited before making recommendations or giving advice to retail clients in relation to options, warrants or futures. This is to ensure that advisers have a minimum level of competency in the products in which they advise.  ASX may in limited circumstances exempt some warrant series from this requirement.

Level One accreditation is required in order to advise on:

  • warrants
  • taking options
  • selling options to close a taken position
  • covered call writing strategy

Level Two accreditation is required in order to advise on:

  • writing options
  • multilegged option strategies
  • Low Exercise Price Options (LEPOs)

To advise retail clients on futures, an adviser must be an Accredited Futures Adviser (AFA).

Accreditation to advise on futures

To be eligible for accreditation as an AFA, an adviser must be employed by a Trading Participant of ASX, and must be either a Level 2 Accredited Derivatives Adviser, or have been a Registered Representative of the Sydney Futures Exchange.

To become accredited as an AFA, the Trading Participant must nominate the adviser, and the adviser must complete an application form and sign a declaration that they have read and understood the Futures Accreditation material provided by ASX.

The Futures Accreditation notes are available below.

ASX Accredited Derivatives Adviser examinations and administration to be outsourced from 1 September 2004. Read the attached notice for more information.

Accreditation exams

In order to be accredited at either Level One or Level Two, an adviser must meet certain criteria. This includes passing the relevant ASX exam, with a minimum mark of 80%.

Exams are multiple choice, on-line exams conducted by Kaplan Education Pty Limited.  For full details, and access to the relevant application forms please visit the the Kaplan website or call the Kaplan Client Services Hotline on 1300 66 22 03.

Successful completion of the Level One exam counts towards 8 hours of Structured Continuing Professional Development for (SDIA) Securities & Derivatives Industry Association Members and successful completion of Level Two counts for 4 Structured CPD hours.

PS146 Compliance

Futures Accreditation