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End to transitional arrangements for qualification requirements – Updates to RG 206 and PF 224

End to transitional arrangements for qualification requirements – Updates to RG 206 and PF 224

Transitional period for qualification requirements ends

The transitional period for credit licensees and responsible managers to acquire necessary qualifications ended on 30 June 2014.

This means that from 1 July 2014, each credit licensee, or its responsible managers, must meet the minimum qualification requirements in addition to the minimum amount of problem-free experience.

The qualifications you generally need are:

  • a credit industry qualification to at least the Certificate IV level, or
  • another general higher level qualification (e.g. a diploma or university degree) in a relevant discipline.

For licensees that provide third-party home loan credit assistance, the licensee's responsible managers must have completed at least a Certificate IV in Finance and Mortgage Broking.

These requirements apply to both new licence applicants and existing licensees (even if you were granted a licence on the basis of people who had the required amount of experience, but not the minimum qualifications).

Representatives who provide third-party home loan credit assistance also need to have at least a Certificate IV in Finance and Mortgage Broking from 1 July 2014.

Updates to RG 206 and PF 224

Guidance on the qualifications and experience needed to demonstrate competence to engage in credit activities is contained in Regulatory Guide 206 Credit licensing: Competence and training (RG 206). The standard licence conditions set out in Pro Form 224 Australian credit licence conditions (PF 224) include conditions that set out the minimum qualification requirements for licensees and representatives that provide third-party home loan credit assistance.

We have updated RG 206 and PF 224 to remove information about the transitional arrangements for meeting qualification requirements.

We have also made some other, more general, updates to RG 206. The changes include:

  • updates to information on how the competence requirements apply to unlicensed COI lenders

updates to information on the types of streamlined applicants.

 

Certificate IV Course

Diploma Course

Commercial Course

Recognition of Prior Learning Program

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