Australian Credit Licence CPD RG 206

Australian Credit Licence CPD RG 206

As an Australian credit licensee, responsible manager, or representative you’ll have noticed that regulators, consumer groups and the media have turned up the intensity of the spotlight shining on your industry. Which is where our Australian Credit Licence CPD comes in. We’re here to support you and make complying with your professional development requirements a little more gratifying.

Our Australian Credit Licence CPD is structured, meaning that there are learning outcomes and an assessment.  The MFAA recognises structured learning as a valid CPD option for their members. 20.00 MFAA CPD hours have been allocated for this activity.

RG 206 Maintain your organisational competence

ASIC Regulatory Guide 206 Credit licensing – Competence and training provides guidance on how credit licensees can meet their initial and ongoing training requirements.

What is RG206?
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.

Organisational competence
If you hold an Australian credit licence (credit licence), you must maintain your organisation’s competence to engage in the credit activities authorised by your credit licence.

What you need to do to comply
The National Credit Act places responsibility on you to ensure you maintain the competence to provide the credit activities authorised by your credit licence.

Ongoing compliance 
Once you have a credit licence, you must maintain your organisational competence at all times. (RG 206.16 )

Did you know?

Your ACL CPD should include both product and industry developments related to credit, and also compliance training, including in relation to new regulatory requirements of the credit regime. For example, compliance training would need to encompass the responsible lending obligations. (RG 206.66 )

Australian Credit Licence CPD for Responsible Managers

Meeting Australian Securities & Investments Commission Requirements
Our Responsible Managers CPD is designed to enable responsible managers of ACL holders to meet their organisational competency requirements for their licence.

ASIC Regulatory Guide 206 Credit licensing – Competence and training stipulates that each holder of an Australian Credit Licence is required to “maintain and update the qualifications and experience of your responsible managers and ensure that your responsible managers undertake at least 20 hours of continuing professional development (CPD) per year”.

ACL Responsible Managers CPD

The responsible managers of each credit licence must keep up to date with credit industry and regulatory developments in order to provide sound leadership for their organisation. ASIC specifies a number of hours of continuing professional development (CPD) per year that responsible managers must undertake. This CPD must relate to credit and compliance issues.

Responsible managers must undertake 20 hours of CPD per year. This may consist of a combination of credit-relevant educational activities.
The CPD should include product and industry developments related to credit as well as compliance training, including training in relation to the new regulatory requirements of the credit regime.

We offer a short online CPD course each year specifically designed to assist Responsible Managers in meeting this obligation.

Australian Credit Licence CPD for Representatives

Meeting Australian Securities & Investments Commission Requirements

Our ACL Representatives CPD is designed to enable representatives of Australian Credit Licences to meet their mandatory continuing training requirements.

Credit regulation requires licensees to ensure their representatives are adequately trained and competent to engage in the credit activities authorised by their licence. Other than representatives providing home loan credit assistance, ASIC expects licensees to determine the appropriate initial and ongoing training for their representatives and to embed the requirements in their recruitment and training systems.

ASIC observes that between 10 and 30 hours of CPD per year is standard in other industry sectors. Consequently, if a licensee determines that less than 10 hours of CPD per year is an appropriate number of hours for their representatives to engage in, ASIC would expect the licensee to explain why this is sufficient.

RepresentativesOngoing training requirements – CPD
A representative providing independent home loan credit assistance*At least 20 hours of CPD each year
A representative only providing home loan credit assistance in relation to their licensee’s own credit productsA choice of: i) a minimum 20 hours of CPD each year; or ii) a regular knowledge update review and sufficient hours of CPD each year to enable completion of the knowledge update
All other representativesBetween 10 and 30 hours of CPD each year

We offer a short online course each year specifically designed to assist Representatives to comply with ASIC’s requirements and achieve 20 CPD points.