Exemptions to licensing under the Act and the new 'D' class licence
Over the course of last year the Commissioner for Consumer Protection has considered a number of applications for exemption under the Finance Brokers Control Act 1975. In particular, a class exemption was sought for "up the line" intermediaries such as mortgage managers. There were also requests for a 'responsible officer exemption' under which directors of bodies corporate could be exempted from certain licensing requirements (e.g. Cert IV) provided there was an appropriately qualified and licensed officer in control of the business. This latter request arose in relation to licensing difficulties faced by those finance broking businesses, including large public companies, where the partners or directors may be removed from the day-to-day operational management of the finance broking business.
While a decision has been made not to proceed with an up-the-line exemption, amendments to the Regulations have been gazetted which give effect to the responsible officer request. These amendments create a new class of licence (D-class), which allows partners of firms and directors of bodies corporate to become individually licensed (thereby enabling the firm or body corporate to become licensed) without the partners or directors having direct experience in negotiating or arranging loans and having to complete the Cert IV.
The grant of a D-class licence is subject to the firm or body corporate having a licensed person in bona fide control of the finance broking business who has successfully completed the Certificate IV and who also has at least two years full-time relevant experience in the preceding five years (that is, a B or A Class licensee).
Link to D-Class application form