Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Credit Act and licence applicants must be able to demonstrate in their licence application that they can comply with it.
We assess your compliance with this obligation by looking at the qualifications and experience of the people who are required to be ‘fit and proper’ to engage in credit activities.
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).
We generally expect you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.
We will give people until 30 June 2014 to acquire the necessary qualifications outlined in RG 206.