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By: Staff Reporter
Connective has established a new corporate entity that will help its brokers make the transition to licensing.
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The new company, Connective Credit Services, will allow brokers who haven't registered for a credit licence to join the group and work as a Credit Representative under its Australian Credit Licence (ACL).
While Connective has encouraged its brokers from the outset to obtain their own ACL, the new vehicle will provide an alternative option for transitioning brokers, including those who wish to join the aggregation group in the future but don’t have their own credit licence, or those who may have failed to register by 30 June 2010.
Connective principal Glenn Lees said the new group will help the aggregator overcome any perceived compliance barriers for brokers.
"We don't want to be in a position where brokers looking to join us are inhibited in any way because they don't have their own credit licence,” Mr Lees said.
“We have therefore established our own ACL entity for brokers to work under while they work towards obtaining their own,” he said.
According to Mr Lees, over 80 per cent of Connective’s brokers have already registered with ASIC and will apply for their own ACL.
“They see the merit in maintaining complete control of their business, rather than being told by their aggregator how they must comply,” Mr Lees said.
While there is a small minority of brokers however who haven’t registered, Mr Lees said the aggregator wants to “keep the door open to them” while they weigh up their compliance options.
Connective Credit Services will provide all the manuals, policies, audit support and monitoring necessary to be fully compliant with the national credit legislation.
