ASIC has released its policy proposals on competence and training for credit licensees.

ASIC’s Consultation Paper 113 Competence and training for credit licensees (CP 113) explains how ASIC proposes to interpret the competence requirements as they apply to credit licensees.

There are two parts to the competence and training requirements of the new credit regime – competence at the licensee level (organisational competence) and training standards for representatives, including employees and agents of a licensee (representative training).

As a general rule, ASIC expects key people to have a relevant qualification (either an industry specific course or a more general qualification) and at least two years relevant experience.

ASIC proposes to accept key people without relevant qualifications but with five years relevant experience in the credit industry over the last seven years until December 2013.

Because of the diversity of roles in the credit industry, ASIC proposes not to prescribe particular training for most credit representatives. Licensees will need to document their training regimes.

The exception is for mortgage broking representatives who ASIC expects to have a Certificate IV in Financial Services (Finance/Mortgage Broking). Existing mortgage brokers who do not have this qualification will be given until December 2013 to obtain it.