An expectation in a regulatory guide
RG 206 was issued in April 2020 and, as its document history says, ASIC updated Note 2 under RG 206.8 in October 2022. The guide states that it does not constitute legal advice.
For most representatives, ASIC says it has not set specific training requirements: the licensee decides what initial and ongoing training is right and builds it into recruitment and training (RG 206.22). It also says it is not mandating a set number of CPD hours for all representatives, but expects the licensee to see that each does a suitable number for the sector and the role, and to document that number (RG 206.95).
Home loans are the exception. ASIC sets specific requirements for representatives who give home loan credit assistance, giving as its reason that poorly informed help with a home loan could put ownership of the family home at risk (RG 206.23, 206.24).
Which home loan work is “third-party”
Home loan credit assistance is credit assistance about a credit product secured by real property (RG 206.82). ASIC separates representatives who give it for third-party products, where neither the licensee nor its representatives will be the credit provider, from those who give it only for their own licensee’s products (RG 206.83).
Who needs what, in ASIC’s summary
RG 206’s Table 1 summarises ASIC’s requirements for responsible managers and representatives. Its six rows are given here in plain words.
| Who | To start | Each year |
|---|---|---|
| Responsible manager, business giving third-party home loan credit assistance | A Certificate IV in Finance and Mortgage Broking, at least | 20 or more hours of CPD |
| Responsible manager, business giving home loan help only on its own licensee’s products | A credit industry qualification at Certificate IV level or above, or another relevant higher-level qualification such as a diploma or degree | 20 or more hours of CPD |
| Every other responsible manager | The same choice of qualification as the row above | 20 or more hours of CPD |
| Representative giving third-party home loan credit assistance | A Certificate IV in Finance and Mortgage Broking | 20 or more hours of CPD |
| Representative giving home loan help only on the licensee’s own products | Training the licensee sets, covering the knowledge in ASIC’s Table 2 and the rest of the role | Either at least 20 hours of CPD, or a regular knowledge update review plus enough CPD to complete it |
| Every other representative | Training the licensee sets for the role and sector | Between 10 and 30 hours of CPD; a licensee choosing fewer than 10 is expected to explain why to ASIC |
For responsible managers, ASIC adds that the 20 hours will be set out in a licence condition, which will also require the licensee to keep a record of the CPD they do each year (RG 206.71). ASIC also expects responsible managers to have at least two years of relevant problem-free experience.
The activities ASIC counts, online ones included
RG 206.97 lists activities that may count towards a representative’s CPD, and says the list is not exclusive. In plain words, its six items:
- attending relevant professional seminars or conferences;
- preparing to present at them;
- publishing journal articles relevant to the credit industry;
- watching videos of professional seminars or conferences held within the last year, up to 10 hours a year;
- completing online tutorials or quizzes on regulatory, technical or professional developments from the last year;
- internal training on systems, procedures and policies relevant to the role, which should not make up most of the hours.
ASIC adds that it does not generally regard private study as enough, unless the study uses audio or visual material made for the purpose. For responsible managers, it says CPD should cover product and industry developments in credit and compliance training, including the responsible lending obligations (RG 206.72).
The knowledge update review
A representative who gives home loan help only on their own licensee’s products may choose a regular knowledge update review instead of the 20 hours (RG 206.99). ASIC expects the review to be run by a registered training organisation through a secure facility, to test knowledge of key regulatory and market developments, and to be completed every three years. A representative who chooses it is not required to do the 20 hours, though ASIC expects a reasonable amount of CPD each year to keep up for the review (RG 206.100).
Qualifications from overseas
ASIC generally accepts relevant overseas qualifications, but not for mortgage broking: a representative with overseas qualifications who wants to provide mortgage broking services must, like others, do the Certificate IV in Finance and Mortgage Broking (RG 206.90). RG 206.94 makes one exception, for people from New Zealand who have practised there for at least six consecutive months: ASIC treats current and former authorised financial advisers, and advisers of qualifying financial entities who meet the competency requirements to be one, as fully meeting its training standards for the products or subject areas their New Zealand qualifications cover. “Former” means an adviser who practised within the three years before starting to practise in Australia.
The other regulator-set figure on this site is the Tax Practitioners Board’s CPE, which the law makes a condition of renewal. A Board’s expectation sits behind CPD for architects in NSW. All five are compared on the home page.