ASIC has released Consultation Paper 165 Credit assistance for home loans: Competence and training requirements (CP 165) which proposes changing RG 206 to modify the minimum training requirements for representatives who provide ‘mortgage broking services’ (whether mortgage brokers or those who work for credit providers).

CP 165 proposes two possible modifications to RG 206:

• refining the definition of ‘mortgage broking’ in RG 206, so that it is limited to providing credit assistance in the form of ‘suggesting’, where credit is secured by real property; and/or
• allowing those falling within the definition of mortgage broking who provide services on behalf of a particular credit provider to undertake a proportion of the Certificate IV in Finance and Mortgage Broking.

Depending on the feedback received, ASIC proposes to implement one or both of these approaches.

Currently representatives who provide mortgage broking services have until 30 June 2014 to obtain a Certificate IV in Finance and Mortgage Broking.

Submissions to CP 165 close on Friday, 16 September 2011.