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News Dismay: ASIC grants Cert IV extension till 2014 The industry has been left stunned by corporate watchdog ASIC’s decision to give brokers until 30 June 2014 to obtain a Certificate IV qualification as part of transition arrangements into the new federal licensing regime. The extension means that brokers who do not have a Certificate IV in Financial Services (Mortgage/Finance Broking), a minimum requirement of most aggregators, industry bodies, lenders and franchise groups, will still be eligible for an
Key points Brokers can obtain credit licence without Cert IV qualification Only need to obtain qualification by 30 June 2014 MFAA at a loss to understand ASIC’s actions
Australian Credit Licence (ACL) this year. And once licensed, they will have more than four years to complete the qualification. The transition policy was made clear in a series of guides issued by ASIC in December to help those preparing their credit licence applications. The guide says Certificate IV is a training requirement for both ‘responsible managers’ and their credit representatives, but both have been provided with a transition period until 30 June 2014 to obtain the necessary qualification. In the case of responsible managers (those responsible for the “quality of the credit activities” in the business) ASIC will accept “responsible managers of lenders who can demonstrate five years relevant problem-free experience” and “responsible managers of businesses providing credit
assistance who can demonstrate two years’ relevant problem-free experience” – even if they do not yet hold a Certificate IV. In the case of representatives of mortgage brokers, ASIC simply states that they have until 30 June 2014 to obtain a Certificate IV in Financial Services (Finance/Mortgage Broking). Phil Naylor, CEO of the MFAA, which last September cancelled the memberships of 1,500 brokers for not completing Certificate IV by its 1 July deadline, said he was “at a loss to understand why [ASIC had granted such a long extension]”. He said the MFAA’s submission was that ASIC should give no more than six months to achieve Certificate IV status. “Seeing that all MFAA members already comply (and that is the bulk of the broker sector) it is inane to provide such an inordinately long period. It serves no purpose other than to allow non-qualified people in the industry,” he said. From 1 July 2014, anyone applying for a credit licence or
Phil Naylor
acting as a representative of a licensee will need to hold a Certificate IV. To follow the debate online go to: www.brokernews.com.au/news/ breaking-news/brokers-givenuntil-mid-2014-to-get-certiv/39377