Mortgage brokers will be required to have at least a Certificate IV education and be able to demonstrate two years of relevant experience, under ASIC's policy proposal.
The industry regulator, which released its consultation paper Competence and training for credit licensees today, said "our proposals aim to strike a balance between upfront guidance on our expectations and giving flexibility to the industry. We recognize that the credit industry is diverse, and so our competence and training needs will vary".
ASIC is seeking feedback on its proposals on competence and training.
"Our final policy on these important topics will be shaped by our discussions with stakeholders. We encourage everyone who has an interest in this to provide ASIC with feedback," said ASIC Commissioner, Dr Peter Boxall.
One proposal suggests "key people involved in mortgage broking" should hold at least a Certificate IV in Financial Services and should also be able to demonstrate two years of relevant problem-free experience.
Another proposal calls for credit licensee's key people to undertake 20 hours of continuing professional development per year.
To read the proposal in full click here.
Industry participants are invited to comment on the proposals; visit the ASIC website at http://www.asic.gov.au/credit.
ASIC gives brokers two EDR choices - Brokers will have to join one of two EDR schemes – either the Financial Ombudsman Service or the Credit Ombudsman Service Limited – under new ASIC proposals