Four benefits of becoming a credit representative

Written by Amanda Stirling
National Manager Risk & Compliance
Connective

The regulatory environment has changed, and it is much harder today for Australian Credit Licence (ACL) holders to meet their compliance obligations. Regulators and lenders are expecting more meaning more time invested by ACL holders, and therefore increased costs.

To overcome the increased time and cost more of our ACL holders are becoming credit representatives of Connective. This is because we help save time and money, provide guidance, security and support.

In this article I’ll discuss four benefits of becoming a credit representative, you’ll also hear from a couple of our brokers who have made the transition.

1. Save time and money

The time, effort and expertise it takes to meet compliance obligations has increased and will continue to with the roll out of the recommendations from the recent Financial Services Royal Commission.

As a Connective Credit Representative, our compliance team will implement and maintain the necessary compliance framework prescribed by ASIC.

We’ll also take care of your day-to-day licencing requirements including:

• Setting up templates in Mercury to help manage the compliance processes (this will save you so much time!)
• Access up-to-date and industry best practice NCCP documents
• Managing the general conduct obligations required under NCCP
• Assistance with AFCA complaints
• We’ll review your website and marketing material to ensure compliance with legislation and ASIC guidelines
• Providing tailored training and coaching through dedicated, experienced compliance support managers.

2. Reduce risk

ASIC charge an annual fee of $1000 for you to hold an ACL, however, this does not include the cost of implementing everything necessary to meet ASIC’s requirements.

One of our brokers, Chris Hazel, recently became a credit representative and told us he’s getting one weekend a month back!

“Becoming a Connective credit representative has freed up countless hours spent auditing files - generally occurring on weekends. Essentially, I get one weekend back a month that I can now spend with friends and family.
Chris Hazell, Bespoke Finance Group

The greatest risk of non-compliance is losing your credit licence and your ability to operate as a mortgage broker. Some of the other risks include professional indemnity insurance premiums escalating and inability to get lenders accreditations.

We’ll reduce the risk by:

• Taking responsibility for maintaining a credit licence and all the obligations that come with that
• Conducting regular reviews of your loan files
• Staying up to date with the changing requirements and keeping you informed
• Protecting your business from fraud using a variety of techniques including artificial intelligence to identify gaps in information or fraudulent behaviour.

“Once we transitioned to become a Connective credit representative, we found that we were not doing enough to satisfy the legislation in terms of living expense verification and documentation of client conversations. The Connective compliance team helped us refine our process to make sure we’re meeting our obligations.
Will Foster, Foster Finance & MFAA Board Member

If you are unsure of your licence obligations watch our webinar

3. Increase revenue

By outsourcing your compliance to our experts, you gain additional support so you can focus on doing what you do best, spending time with your clients and helping them reach their goals so you can grow your business.

In the six months since we became a credit representative, we have seen the highest settlement volumes Bespoke has had since inception”.
Chris Hazell, Bespoke Finance Group

4. Support

Our credit representatives get access to a dedicated compliance support manager. Our compliance gurus live and breathe compliance (and they love it)!

They will help you:

• Implement best practice processes
• Set up Mercury so you save time
• Review your files
• Educate and inform you and your team
• Protect your business.

Did you know each year our compliance support managers visit over 1000 brokers at their offices providing coaching, guidance and support? In addition, they conduct over 150 hours of face to face workshops and virtual webinars.

They are experts and their job is to protect your business from risk, save you time and money and offer you support to run your business, your way.

If you would like to learn more about becoming a credit representative contact your BSM or email compliance@connective.com.au.