Cert. IV minimum requirement: ASIC

by BN29 Jul 2009

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.

Related stories:

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


  • by BBB 30/07/2009 3:34:51 PM

    This is great news it will get some of the "less professional" operators out.
    But really is 2 yaers industry experience long enough???
    I would have thought at least 3 or more especially if you are a principal of the broking firm.

  • by Mark 30/07/2009 6:21:21 PM

    Essentially the policy that is outlined in the Consultation paper is mirroring the MFAA policy anyway. If you are an MFAA member, then you are required to have a minimum of Cert IV broking qualifications. As a member of a large aggregation group, I am also required to have 2 years worth of experience before being entitled to my independent licence.
    Having said that, I've known of well educated and experienced brokers who still are unable to measure up. Having the knowledge (education) does not equate to displaying the moral aptitude to do what is right. When driving on the road, we all know what the speed limit is....but do we obey it. In the same manner, there are still some cowboys (and cowgirls) among us who teeter on the edge of the what is right (and subsequently fall into the abyss of what is actually wrong and fraudulent). Instead of over –education in the future, let’s hope the $2.7 million spent by ASIC on compliance measures includes audits to weed the less compliant brokers out of our industry.

  • by Abe 31/07/2009 7:19:40 AM

    Based on some comments around these parts, I hope the course includes some basic financial maths so brokers might be able to calculate such things as the fair value of a break cost for a fixed rate loan.