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ISCOVER
Staff Reporter
ASIC has released a revised version of Regulatory Guide 206 Credit licensing: Competence and Training, with a modified policy on organisational competence and representative training for credit licensees that provide home loans.
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The revised policy gives additional flexibility for credit licensees that provide home loans and responds to feedback received from Consultation Paper 165 Credit Assistance for Home loans: Competence and Training Requirements, released earlier this year.
The revised guide sets out ASIC's minimum expectations on how credit licensees must maintain organisational competence and ensure that their representatives are adequately trained.
According to a statement from ASIC, responsible managers of credit providers providing home loans will no longer need to complete a Certificate IV in Finance and Mortgage Broking, but will instead be able to hold any relevant credit industry qualification to at least the Certificate IV level, or another general relevant higher level qualification (e.g. a diploma or university degree).
In addition, ASIC will no longer prescribe a particular training course for representatives providing credit assistance in relation to home loans offered by their own licensee. Instead, ASIC have provided more principle-based guidance on the types of skills and knowledge these representatives should acquire through the training they undertake.
Speaking about the modifications, ASIC commissioner Peter Kell said home loans are the largest loan most consumers will take on so it is critical that credit licensees have appropriate organisational competence, and adequately trained representatives, to meet consumers' needs.
"Our revised policy seeks to minimise licensees' compliance burden, while requiring a high standard of training for those who play a significant role in decisions about home loans," he said.
ASIC will monitor how the credit industry complies with the revised guide over the next three years, and the broader standards of training and competence within the industry and will review its policy in light of any findings arising from that monitoring process.
"If, at that stage, we are not confident that the more flexible arrangements we are announcing are effectively ensuring a high standard of organisational competence and representative training in the industry, we may investigate whether a more prescriptive approach would be appropriate," Mr Kell said.
