By: Belinda Luc
ASIC has helped dispel broker concerns about how the new national credit legislation will impact their referral relationships.
The majority of brokers attending the ASIC roadshow in Sydney yesterday said one of their greatest concerns was whether their referral partner falls under the description of a credit assistance provider or intermediary, and is therefore required to be licensed.
Under the new laws, a person is required to be licensed if they ‘suggest’ or ‘assist’ a consumer in relation to a particular credit contract.
While the details are still grey, ASIC representatives helped clarify that if a broker’s referral partner is advising a consumer about someone who offers a range of products and who will assess their needs, and the advice is not in relation to a particular credit contract, then the broker’s referral relationship will generally not be impacted by the new laws.
However, referral partners who advise consumers to see brokers who deal with one specific product or lender, may be seen to be providing credit advice.
Brokers are encouraged to attend the road show, or view the webcast online at www.asic.gov.au/credit or by phoning the ASIC Infoline on 1300 300 630.
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