Regulatory Alerts2024-08-30 | RG-206RG 206 Credit licensing: Competence and training
The Australian Securities and Investments Commission issued Regulatory Guide 206 to outline minimum expectations for credit licensees demonstrating organisational competence under section 47(1)(f) of the National Credit Act. Licensees must ensure their representatives are adequately trained and competent to engage in authorised credit activities as required by section 47(1)(g). Compliance requirements vary based on business nature and scale, with regulators assessing fit-and-proper qualifications and experience to verify adherence to these obligations.
Issued 1 April 2020
Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Credit Act and licence applicants must be able to demonstrate in their licence application that they can comply with it. We assess your compliance with this obligation by looking at the qualifications and experience of the people who are required to be ‘fit and proper’ to engage in credit activities. What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence. You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g). We generally expect you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.
Download the guide (PDF 404 KB)