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ISCOVER
Staff Reporter
After receiving more than 700 applications for credit licences, ASIC has formally approved 200 under the new National Credit Code Protection Act 2009.
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Brokers looking to hold their own license are required to apply for a licence before 31 December 2010.
According to a statement by ASIC, getting a licence is the next major step in the credit reform for existing businesses participating in credit activities, following registration, which ended on 30 June 2010.
Data on the ASIC website found more than 14,800 entities and individuals registered to become credit providers with the corporate regulator.
The current lack of licensee applications comes as no surprise to the industry.
Last week, Firstfolio’s chief executive Mark Forsyth told The Adviser that the majority of the broking industry would leave their licensing decision to the 11th hour.
“Most won’t decide whether they want to hold their own licence or be a credit rep until the 11th hour. As such, I think most brokers will opt to be credit representatives,” he said.
Before applying for a credit licence brokers are encouraged to read regulatory guides 205 and 206 (which address general conduct obligations and organisational competence obligations.
