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Jessica Darnbrough
The industry is expected to see a large reduction in the number of brokers holding their own licences.
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Speaking to The Adviser, Advantedge's general manager of broker platforms Steve Weston said while some brokers had initially thought it was a good idea to hold their own licence, the regular and consistent compliance requirements under NCCP had become too taxing.
As such, Mr Weston said he would not be surprised to see a large reduction in the number of ACL holders, as brokers look to take on the role of credit representative in the New Year.
Brokers who sought their own Australian Credit Licence at the end of last year will soon be forced to renew their licences.
"It will be interesting to see how many brokers will not renew their licence," Mr Weston said.
"Under NCCP, brokers with a licence are required to complete an annual compliance certificate, which is a reasonable amount of work. They also need to renew the PI cover, which again is a reasonable amount of work.
"Will that be sufficient to see brokers leave the industry at the same speed as what we saw during the registration process in 2010 – probably not. But, will it be enough to cause some brokers to look at becoming a credit rep – absolutely."
