Compliance consultancy for credit licensees QED Risk Services has launched a new one-of-a-kind third party credit licence model that offers greater flexibility for brokers.
Entitled Pursuit Broker Services, the model lets brokers utilise any aggregator they choose while working as an authorised credit representative under Pursuit’s licence. Furthermore, brokers will also be offered compliance support, with the entire package coming at a flat fee.
The model is aimed at brokers looking for greater freedom without being constrained by limitations imposed by a particular credit licensee.
QED director Greg Ashe said the goal was to help brokers with compliance while allowing them to run their business as they see fit.
“The Pursuit Broker Services model gives the broker the flexibility to write the business they want but with the strength of knowing that they are doing so in a way that is not going to bring them to run afoul of the law.”
The firm has recently seen an increase from brokers in the number of enquiries around how to do things an aggregation licensee won’t let them do, he said.
Since 2010, QED has been involved in facilitating almost 10% of all Australian credit licences (ACLs) in the country. This involves establishing international compliance programs within each client’s business through advice and tools such as QED CompliFast.
“I want to create an environment where everyone ‘gets it’ that compliance is not about feeding the regulator’s ego. It’s about putting systems in place that makes the broker’s business work better, resulting in more revenue and profitability. If compliance isn’t commercially viable, it’s useless,” Ashe said.
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