Original credit provider or intermediary
If you selected the authorisations to either ‘Engage in credit activities as a credit provider or lessor’ or ‘Engage in all credit activities’, you will be asked whether you intend to provide credit as an ‘original credit provider’.
You are an original credit provider if you are the person who provides credit under a credit contract and who is the initial holder of rights under the credit contract (i.e. you have not become a credit provider because you have been assigned rights under the credit contract).
If you selected the authorisations to either ‘Engage in credit activities other than as a credit provider or lessor’ or ‘Engage in all credit activities’, you will be asked whether you intend to ‘act as an intermediary’ between a credit provider and a consumer for the purpose of securing credit for the consumer.
You will ‘act as an intermediary’ if you are a person who takes part in the process of securing the provision of credit for a consumer under a credit contract or consumer lease by preparing or passing on information as the result of a request from the consumer or another intermediary. You may be an intermediary even if you do not have face-to-face contact with the consumer. Innovations in credit product design mean that a consumer’s credit application may pass through a number of hands between the first person they deal with and the credit provider, and the roles and functions of all of these different people may be uncertain. The definition of ‘acts as an intermediary’ is intended to cover all of these people.
For example, you will be acting as an intermediary if you are:
an aggregator that acts as a conduit between an individual broker and a credit provider; or
a mortgage manager that is involved in arranging a credit contract (in addition to managing the credit contract once it has been provided).
For more information on what is meant by acting as an intermediary, see RG 203.
If you answer ‘yes’ to either of these questions, you will be asked to indicate:
your intended distribution model (e.g. whether you will use employee sales representatives, third-party sales representatives (including franchisees) or related companies);
how you will most often receive, or arrange, credit applications (e.g. over the counter, home visits, telephone, mail, internet);
whether you intend to cross-sell financial products, other than credit contracts or consumer leases, to your client base, or refer your clients to the issuers of other financial products (e.g. you may sell insurance products to your clients); and
if you do cross-sell, whether you will receive commissions or other payments.
This information comes from Regulatory Guide 204.