In an interview with Australian Broker Online, National President of the Finance Brokers Association of Australia, Peter White said that brokers should be prioritising compliance and stresses the importance of keeping on top of compliance at all times. “It is important that we all keep focus of our compliance obligations at all times and keep up-to-date on compliance obligations.”
Having efficient procedures and processes in place can make compliance easier. rp.data can assist with the adherence to these regulations via a number of tools.
ASIC sets out its expectations for responsible lending conduct compliance in Regulatory Guide (RG) 209. There are three steps to be taken:
- make reasonable inquiries about the consumer’s financial situation, and their requirements and objectives;
- take reasonable steps to verify the consumer’s financial situation; and
- make a preliminary assessment (if you are providing credit assistance) or final assessment (if you are the credit provider) about whether the credit contract is ‘not unsuitable’ for the consumer (based on the inquiries and information obtained in the first two steps).
In addition, if the consumer requests it, you must be able to provide them with a written copy of the preliminary assessment or final assessment (as relevant).
While your client can provide evidence of employment and income status and you can use rp.data to independently verify their assets and liabilities. Using rp.professional you can validate a client’s property ownership and perform an rp.autoval (AVM) report to get the approximate value of the property and know it’s level of accuracy based from its Forecast Standard Deviation (FSD%).
A Comparable Market Analysis (CMA) report provides details data on comparable properties that have sold, properties currently on the market and also offers vendor discounting levels (market comparison) on those properties still on the market or recently sold. It can also be used as best practice to improve customer engagement and show your level of property knowledge in the local market.To run a CMA or AVM log on to rp.professional or visit rpdata.com/training to book a training session.