Background checks

Licensees should make relevant inquiries into the background of the people they authorise as credit representatives, both before appointing them and while they continue to act as representatives.

These checks could include referee reports, police checks, and searches of our register of banned and disqualified persons and our register of authorised credit representatives.

Note: Before authorising a credit representative, a licensee must make reasonable inquiries to establish the individual's identity and whether they have already been allocated an ASIC credit representative number. Where an ASIC credit representative number has been allocated, the licensee must include the number in documents they lodge with ASIC that refer to the representative: see regulation 9(5), (6) and (7) of the National Consumer Credit Protection Regulations 2010.

Licensees considering authorising a credit representative to act as a mortgage broker will also need to comply with the ASIC Reference checking and information sharing protocol (ASIC protocol).

The ASIC protocol requires a recruiting licensee to request a reference about a prospective representative from the representative's current and/or former licensee(s). It provides a template reference request which asks for information about a prospective representative in the past five years.

Note: See Information Sheet 257 ASIC reference checking and information sharing protocol (INFO 257) for more information.

The authorisation of a credit representative is of no effect if the following applies to the representative when the authorisation is given:

• the authorisation to engage in credit activities is not covered by the licensee's licence
• the person is banned from engaging in credit under relevant state, territory or federal law
• the person has a prescribed state or territory order in force against them
• the person has been convicted of serious fraud within the last 10 years.

An authorisation will also cease to have effect if the authorised person becomes subject to the above matters after the authorisation is given.

It is an offence to purport to give an authorisation that is of no effect, or to fail to vary or revoke an authorisation that has later ceased to have effect.

Training requirements

Credit representatives must be adequately trained and competent to engage in the credit activities authorised by the credit licensee.

Credit licensees must determine the appropriate training for their credit representatives on appointment and while they continue to act as representatives, to comply with their obligation to ensure that their representatives are adequately trained and competent to engage in the credit activities. If industry standards exist for sectors of the credit industry or for specific products, we expect that licensees will ensure their representatives are trained at least to the level of the industry standard.

Credit representatives who provide third-party home loan credit assistance must:

• have at least a Certificate IV in Financial Services (Finance/Mortgage Broking)
• undertake 20 hours of continuing professional development each year.

Note: See Regulatory Guide 206 Credit licensing: Competence and training (RG 206) for more information.

AFCA membership

A credit representative must be a member of AFCA.

If the credit representative does not have AFCA membership at the time of authorisation, the authorisation has no effect. If a credit representative ceases to be a member of AFCA, the authorisation ceases to have effect.

Written consent

A licensee must give written notice to any person they authorise as a credit representative. A licensee must also give its written consent to enable a body corporate credit representative to sub-authorise a natural person to engage in credit activities on behalf of the licensee.

A body corporate that is a credit representative of a licensee must give written notice to any person they sub-authorise.

Both the credit representative and the licensee should retain a copy of the consent for their records.

Details that must be provided about credit representatives

On the appointment of a credit representative, the licensee or the corporate credit representative must notify ASIC of the following details about the credit representative:

• the date of authorisation
• their credit representative number (if a current or former credit representative)
• their name, date and place of birth, or body corporate name and ABN
• their principal business address (and an alternative address if applicable)
• details of their AFCA membership.

Details needed if a credit representative also represents other licensees

If the credit representative also represents other credit licensees, the licensee or corporate credit representative must notify ASIC:

• of the credit licence number and name of the other licensee
• whether the other licensee has consented to the credit representative also representing the licensee making the notification
• whether the licensee is a related body corporate of the licensee making the notification.

Details needed if a credit representative is a body corporate

For a credit representative that is a body corporate they must have written consent to authorise a natural person to engage in credit activities on behalf of the licensee making the notification.

What to do when a credit representative doesn't have the same authorisations as the licensee

If the credit representative does not have exactly the same authorisations as the licensee, we must be advised of the activities the credit representative can engage in on behalf of the licensee.

The licensee or the corporate credit representative must also ensure that the following statements are true for this credit representative:

• A banning order or disqualification order under Part 2-4 of the National Credit Act is not in force against the person, body corporate, partnership or multiple trustee in relation to a credit activity included in the authorisation.
• The person, body corporate, partnership or multiple trustee is not banned from engaging in a credit activity under a law of a state or territory.
• The person has not been convicted, within the last 10 years, of serious fraud (does not apply to a credit representative that is a body corporate, a partnership or a multiple trustee).
• A prescribed state or territory order is not in force against:
  • the person
  • a director, secretary or senior manager of the body corporate who would perform duties in relation to the credit activities specified in the authorisation, or
  • a partner or a trustee who would perform duties in relation to the credit activities specified in the authorisation.

Form CL30 is the form to use for notification of appointment of a credit representative. This form is available online through the Credit registers portal.

Guide to how the bulk upload works

Download a guide that shows how the bulk upload works with Forms CS03 and CL30 - Guide to uploading credit representative details (PDF)

XML schema to facilitate bulk authorisation uploads

We have provided an XML schema to facilitate bulk uploads. It is standard industry practice to use XML schemas to define message content (Elements, Element Order and Element Types).

The online forms allow XML file attachments with representative details. This loads the information you provide into the online form without you having to key it in yourself.

The data must comply with the XML schema and with our business rules or it will not be accepted.

Download XML schema for Form CL30 (Appoint a credit representative) - XML schema for Form CL30 Appoint a credit representative (.xsd)