The NCCP Act and Responsible Lending RG209

The NCCP Act and Responsible Lending RG209

Credit licensees must comply with the responsible lending conduct obligations of the National Consumer Credit Protection Act 2009 (Cth) (National Credit Act). These obligations are designed to ensure that consumers are not provided with credit that is unsuitable for their needs, objectives or financial situation.

Responsible lending is central to consumer protection in Australia’s credit regime. It requires lenders and credit assistance providers to make reasonable inquiries, verify a consumer’s financial circumstances, and assess whether a credit product is appropriate.

Regulatory guidance, including ASIC Regulatory Guide 209 (RG209), outlines how these obligations should be applied in practice. In addition, prudential oversight by APRA – including guidance such as APG 223 – reinforces sound lending practices across the banking sector.

Recent reforms have expanded the scope of regulation, including the introduction of buy now pay later (BNPL) products as regulated low cost credit contracts (LCCCs) from June 2025.

About our course

Our online course, NCCP Act and Responsible Lending Course, provides a comprehensive and practical overview of responsible lending obligations and the broader consumer credit framework in Australia.

You will explore how the regime operates in practice, including the steps required to assess suitability, meet disclosure obligations, and manage compliance risks across the loan lifecycle.

This updated edition includes detailed coverage of the regulation of buy now pay later (BNPL) products as low cost credit contracts (LCCCs), including modified responsible lending obligations and new licensing requirements.

Earn 4 CPD Points while gaining valuable industry skills and insights: Our NCCP Act and Responsible Lending RG209 course is allocated CPD points by the MFAA and FBAA.

You may also like our Credit CPD for Representatives or Responsible Managers.

What is responsible lending?

The objective of responsible lending obligations is to ensure that credit providers and assistance providers do not suggest, assist with, or provide credit contracts that are unsuitable for consumers.

A credit product may be unsuitable if:

  • The consumer cannot meet repayments, or can only do so with substantial hardship
  • The product does not meet the consumer’s requirements or objectives
  • The structure or terms of the product are inappropriate for the consumer’s circumstances

To comply, credit licensees must have robust processes in place to:

 

  • Make reasonable inquiries about a consumer’s financial situation
  • Verify that information using reliable evidence
  • Conduct and document suitability assessments

Program Content

  • Responsible lending framework under the NCCP Act and RG209
  • Application of responsible lending obligations in practice
  • Making reasonable inquiries and verifying financial information
  • Key disclosure documents and compliance requirements
  • Regulation of buy now pay later (BNPL) as low cost credit contracts
  • Lending obligations across the loan lifecycle

Learning Outcomes

  • Understand the responsible lending framework under the NCCP Act
  • Explain how RG209 guides responsible lending practices
  • Identify when responsible lending obligations apply
  • Recognise the regulatory treatment of BNPL and low cost credit contracts
  • Apply processes to assess suitability and support compliant lending practices

What you will learn

Who is this course for?

  • Credit licensees
  • Finance and mortgage brokers
  • Bank and non-bank lenders

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.

Earn 4 CPD Points while gaining valuable industry skills and insights.
Our NCCP Act and Responsible Lending RG209 course is allocated CPD points by the MFAA and FBAA.

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Frequently Asked Questions

RG 209 Credit licensing: Responsible lending conduct is a guide for credit licensees and credit applicants. It sets out ASIC’s views on what the responsible lending obligations in Ch 3 of the National Consumer Credit Protection Act 2009 (National Credit Act) require, and steps you can take to minimise the risk of non-compliance with these obligations. Our RG206 Credit and Mortgage Broking CPD for Responsible Managers is designed to meet ASIC’s RG206 regulatory compliance requirements and empower mortgage and credit professionals to do better business.

Credit licensees must comply with certain responsible lending obligations. The key concept of these obligations is that credit licensees must not enter into or assist a consumer with a credit product that is unsuitable for them. RG209 sets out ASIC’s views on what the obligations require and steps you can take to minimise the risk of non-compliance. This section of the guide outlines the responsible lending obligations and gives an overview of our guidance. It also explains what kinds of lending and credit activities are not covered by the responsible lending obligations. Our The NCCP Act and Responsible Lending Course clarifies the who, what, and why of this aspect of credit law, so you can assist your practice to comply with its obligations.  

Our CPD short courses are self-paced with online learning resources & on-going support.
  • You have up to 8 weeks to complete the learning and assessment requirements for your CPD short course.
  • Experienced professionals can complete in less time.

Our CPD short courses are assessed by a short open book multiple-choice exam.

To get started, either:
  • Purchase course/s online. (You can add multiple courses to the cart.) Please note: Online orders may take up to 1 business day to be processed and for your team to receive their course login details.
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Contact us for your Corporate Solution.

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  • Contact Us to arrange an invoice
Please note: Online orders may take up to 1 business day to be processed and for you to receive your course login details.  
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

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).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

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