ASIC, in a Credit Reform Update (Issue 37), 14 April 2014 reminds credit licensees and responsible managers that the transitional period for them to acquire the necessary qualification ends on 30 June 2014.
From 1 July 2014, responsible managers of each credit licensee must meet the minimum qualification requirements in addition to the minimum amount of problem-free experience. ASIC makes it clear that the requirements apply to responsible managers of existing licensees even if they were granted a licence on the basis of industry experience, instead of meeting minimum qualification requirements.
The competency and training requirements for credit licensees and responsible managers are set out in Regulatory Guide 206.
Below are excerpts from Regulatory Guide 206, highlighting the soon to end transitional arrangements and the ongoing requirements to qualify and continue professional development.
Your responsible managers must comply fully with the qualification requirements in Section B (see RG 206.50–RG 206.54) by 30 June 2014. Until then, we will also accept:
- responsible managers of lenders who can demonstrate five years relevant problem-free experience and
- responsible managers of businesses providing credit assistance who can demonstrate two years relevant problem-free experience.
We will accept this experience even if the responsible managers do not have the Certificate IV level credit industry-specific qualifications or general relevant higher level qualifications outlined in Section B. As a transitional arrangement, representatives who provide third-party home loan credit assistance will have until 30 June 2014 to obtain a Certificate IV in Finance and Mortgage Broking.
Summary of ASIC’s organisational competence and representative training requirements
We have summarised our organisational competence and representative training requirements in Table 1.
Table 1: Our organisational competence and representative training requirements
Each credit licensee needs to review the qualifications of its responsible managers (and its representatives) to ensure compliance and also review the requirements for ongoing training to ensure that ASIC requirements are being met.
1 Home loan credit assistance’ means credit assistance in relation to a credit product where the credit is secured by real property. Your business will be providing third-party home loan credit assistance where neither you nor your representatives will be the credit provider.