Supervising and training representatives

Before we can grant you a credit licence, you must demonstrate that you have adequate arrangements to:

  • supervise and monitor the activities of any representatives and ensure that any breaches are identified and remedied; and

  • ensure that any representatives are adequately trained, and are competent, to engage in the credit activities covered by your credit licence.

For guidance on what we consider to be adequate training, see RG 206. Your arrangements should be appropriate to the nature, scale and complexity of your business.

You will be asked a group of questions that are designed to obtain your confirmation that you have, or will have from the date your licence starts (if it is granted), arrangements to ensure that your representatives will be adequately trained and competent, and that you will supervise and monitor your representatives, including whether you:

  • have, or will have, a written policy that details the minimum training requirements;

  • have, or will have, a training register;

  • have, or will have, a documented process for monitoring and supervising all representatives (including credit representatives);

  • will undertake certain checks during your recruitment process for representatives;

  • have, or will have, processes to ensure representatives providing third party home loan credit assistance will have, as a minimum, a Certificate IV in Finance and Mortgage Broking; and

  • have, or will have, processes to ensure credit representatives are members of an approved EDR scheme.

Note: 'Third party home loan credit assistance' means home loan credit assistance where the credit assistance relates to credit secured by real property and neither the licensee nor its representatives will be the credit provider: see RG 206 for further details.

If you are an AFS licensee, the online application will only display questions that are specific to the credit licensing regime. We have limited the questions that are asked because you have already demonstrated that you have adequate arrangements in relation to the training and supervision of your representatives in your AFS licence application. We expect that, if you are granted a credit licence, you will comply with your obligations under the National Credit Act by maintaining the same types of arrangements in relation to representatives that engage in credit activities on your behalf.

This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00