ASIC has released a revised version of Regulatory Guide 206 with a modified policy on representative training for credit providers that provide home loans.

The main change to RG 206 is to replace the term ‘mortgage broking services’ with the term ‘home loan credit assistance’, (which ASIC defines as credit assistance in relation to a credit product where the credit is secured by real property) and to permit a representative only providing credit assistance in relation to home loans offered by their own licensee (as opposed to representatives of intermediary mortgage brokers) to complete training in the form determined appropriate by the licensee, subject to certain qualifications.

The revised RG 206 make changes to the requirements for the qualifications of representatives, ongoing training for representatives, the type of training for representatives and the qualifications of responsible managers of credit licensees.

ASIC has not changed its policy regarding qualifications for responsible managers of independent mortgage brokers or representative training for the intermediary mortgage broking sector.

We will discuss the changes at our Responsible Managers seminars in February 2012.
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ASIC has exempted rural financial counselling and money management service providers from licensing requirements for providing credit assistance under the National Credit Act: [CO 11/926].

Money management service providers who give financial advice about basic deposit products in the course of providing a money management service have also been granted limited relief [CO 11/927] from licensing requirements under the Corporations Act 2001 .

Rural financial counselling services are available to primary producers and rural small businesses in financial difficulty and are funded in whole, or in part, by the Commonwealth Government through the Department of Agriculture, Fisheries and Forestry (DAFF) or, in Queensland, through the Department of Employment, Economic Development and Innovation (DEEDI).

Money management services are provided predominantly to improve the financial knowledge and skills of consumers, principally Indigenous consumers in regional and remote Australia. These service providers are funded in whole, or in part, by the Commonwealth through the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

ASIC’s exemptions are subject to important conditions, namely that:

• the regulated service is provided to the consumer as part of a rural financial counselling or money management service;
• no fees or charges are payable by the consumer for any aspect of the rural financial counselling service or money management service;
• the service providers do not engage in any credit activity or financial services business beyond the scope of these exemptions, and take all reasonable steps to ensure that none of their employees do so; and
• the service provider ensures its representatives have undertaken appropriate training to ensure that they have adequate skills, knowledge and experience to satisfactorily provide the services.