30 June 2014 was the deadline for the requirement to acquire the necessary qualifications outlined in RG 206 following a transition period of four years.
Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out ASIC’s minimum expectations for demonstrating organisational competence.
Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Credit Act and licence applicants must be able to demonstrate in their licence application that they can comply with it.
Representatives must also be adequately trained and competent to engage in the credit activities authorised by a licence: s47(1)(g). The use of the term “adequately trained” is not defined in the legislation. However as a risk assessed approach, it is often determined that the standard set for home loan mortgage broking is benchmarked as the same standard for other consumer finance provisions.
ASIC has set specific requirements for representatives who provide home loan credit assistance:
- Representatives who provide third-party home loan credit assistance need to have at least a Certificate IV in Finance and Mortgage Broking. This is a specific qualification and under the governance of ASQA may only be provided by an approved Registered Training Organisation (RTO)
Representatives of a Licence also need to undertake at least 20 hours of CPD per year.
- Representatives who only provide home loan credit assistance in relation to credit products offered by their own credit licensee may undertake training in the form determined appropriate by the licensee.
However, this training should allow the representatives to apply […] the knowledge appropriate to their role.
These representatives should either undertake at least 20 hours of CPD per year or undertake a regular ‘knowledge update review’ and sufficient hours of CPD each year to enable completion of the knowledge update review.
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