Section 47(1)(g) of the National Consumer Credit Protection Act 2009 (Cth) requires Australian Credit Licensees to ensure that their employees, representatives and Responsible Managers are adequately trained and competent to engage in credit activities authorised by the licence.
All employees, representatives and Responsible Managers operating under an Australian Credit Licence can satisfy their training obligations through Continuing Professional Development (“CPD“). ASIC’s Regulatory Guide 206 (“RG 206“) stipulates minimum requirements for these individuals.
10-30 hours per year
Employees / Representatives must complete any training determined by the licensee to be appropriate to the employee / representative’s role and industry sector.
minimum 20 hours per year
Responsible Managers must complete any training determined by the licensee to be appropriate to the Responsible Manager’s role and industry sector.
minimum 20 hours per year
Where credit assistance is provided in relation to 3rd party home loan products Employees / Representatives must complete a minimum of 20 hours of CPD.
Where credit assistance is provided in relation to the licensee’s own home loan products only, the individual may elect either:
ASIC’s Regulatory Guide 206 notes that where a credit licensee considers that less than ten (10) hours of CPD is appropriate for employees and representatives, ASIC will require the licensee to explain why this amount is considered sufficient.
Professional development for Responsible Managers, representatives and employees must be completed at an appropriately high level. Training should cover:
All broad aspects of the Credit Licence obligations such as general compliance, credit industry and regulatory updates.
Knowledge related to the credit activities under the Australian Credit Licence.
Knowledge specific to the individual’s role within the organisation.
Credit Providers should also undertake training that covers their obligations under the Anti-Money Laundering and Counter Terrorism Financing legislation.
ASIC’s guidance suggests that Responsible Managers, employees and representative prepare a training plan at least annually, subject to the approval of the credit holder. Training plans should address how the individual will:
Licensees should ensure each of their Responsible Managers, representatives and employees have a personal training plan and are recording details of all CPD activities completed including the following:
ASIC may conduct a surveillance visit on a credit licensee’s business in relation to its ongoing compliance with the obligation to maintain competence to engage in credit activities. Failure to adhere to the training requirements will result in civil penalties.
Sign up today for up-to-date compliance policies and regular consultation with our staff. Watch our demonstration video now.
We will get in touch as soon as possible
