Compliance update - ACL Holder and Credit Rep obligations

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As part of NCCP, there are obligations that need to be met by ACL Holders and Credit Reps alike. Specifically, Regulatory Guide 206 (RG206) refers to Credit Licensing, Competence and Training.

ASIC assess compliance under this obligation by looking at the qualifications and experience of the people (you!) who are required to be ‘fit and proper’ to engage in credit activities.

RG206 sets out the minimum expectations for demonstrating organisational competence. It’s critical you ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence. As a minimum, you are expected to initiate ongoing training for your representatives and to embed this in your recruitment and training systems.

ASIC will allow until 30 June 2014 for your people to acquire the necessary qualifications outlined in the guide. Please note that this is separate to any requirements of the MFAA or FBAA.

If your business provides independent home loan credit assistance then your Responsible Manager needs to have a minimum of two years problem free experience and either:

(a) Credit industry qualifications to at least the Certificate IV in Finance & Mortgage Broking, or

(b) Another general relevant higher level qualification i.e. diploma or university degree.

As a Licensee you will need to determine what is appropriate for initial and ongoing training to ensure your compliance with the credit representatives training obligations and embed this into your training systems.

For credit representatives who provide home loan credit assistance you are required to have, at minimum Certificate IV in Finance and Mortgage Broking and need to undertake a minimum of 20 professional development hours per year.

The full ASIC RG206 can be viewed via the link below:


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