Login
ISCOVER
By: Jessica Darnbrough
The majority of brokers want to hold their own licence under the new credit regime.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
According to The Adviser’s latest weekly straw poll, 57.3 per cent of brokers indicated they intend to become an Australian Credit License holder.
Of the 445 respondents, 29.7 per cent said they would prefer to be a credit representative under their aggregator’s or company’s licence, while the remaining 13 per cent said they were unsure which path to take.
Auspak principal Gerard Hansen is one of the many brokers who are looking to obtain their own licence.
Mr Hansen said making the decision to obtain a credit licence was easy.
“I already meet a lot of the necessary compliance obligations, so I don’t think it will be that difficult for me to go that extra step and obtain my own licence,” Mr Hansen told The Adviser.
“More than that however, I think by having my own licence I will be able to more effectively control the direction of my business. Having a licence will allow me to be the master of my own destiny.”
Acceptance Finance director Daniel Di Coza said he would obtain his own licence for the same reasons.
Mr Di Coza told The Adviser that he already complies with most of the regulations and falling under someone else’s licence doesn’t suit his business model.
“I believe brokerages that have a bit of infrastructure will opt to become an Australian Credit Licence holder,” he said.
But while a lot of brokers are opting to take their own licence, not all are sold on the option.
Territory Home Loans director Richard Black said while he was unsure exactly which path he would take at the moment, he would likely opt to be a credit representative under his aggregator’s licence.
“I think the credit rep model will suit me and my business more. That said, I would like a little bit more information before I make any final decisions.”
Steve Weston, Advantedge general manager of distribution for broker platforms and lending, told The Adviser last month that it doesn’t matter which path brokers choose so long as it is fits in with their business model and goals.
Mr Weston said larger brokerages that offer a wide range of products might benefit from holding their own ACL. Smaller brokers on the other hand may find it less of a drain on their resources to become an authorised representative of a licensed broker.
“For some brokers, the licensing application process and preparation time could mean that’s one less loan they could be writing,” he said.
Under the new credit regime, brokers wishing to apply for a licence must do so before 31 December 2010.
