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ISCOVER
By: Belinda Luc
With licensing now less than a month away, ASIC has issued updated policy guidance to brokers that intend to engage in credit activities after 1 July 2010.
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The regulator’s updated policy, which is outlined in its guide: Do I need an Australian credit licence (RG 203) and Regulatory Guide 204 Applying for and varying an Australian credit licence (RG 204), highlights the new requirements for training, professional indemnity, dispute resolution and record keeping.
ASIC also noted that licensing requirements applied to the provision of credit connected with Australia only, and outlined where debt management services would be subject to licensing.
In addition, the regulator has taken the opportunity to clarify some issues that have been raised by industry.
MFAA chief executive officer Phil Naylor said their members were already well prepared for the imminent legislation.
According to Mr Naylor, MFAA brokers are already held to a higher standard than licensing.
“The legislation says a loan must not be unsuitable, but we require members to only provide finance which is appropriate,” he told The Australian Financial Review.
