Code of Practice & Disputes Resolution Service

Responsibilities of Finance Broker to the Credit Provider

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A Finance Broker, when negotiating a loan application with a Credit Provider, to the extent required by the terms of any accreditation, agency or other agreement and any applicable common or statute law will:

General

1. Disclose to the Credit Provider that it also acts for the Client and that it may receive a fee from the Client, such disclosure may be made in a pre-contractual statement or advised in writing when applicable.
2. Discharge its responsibilities and duties competently, with integrity and honesty and in accordance with any accreditation, agency or other agreement.
3. Exercise reasonable care and skill.
4. Comply with its obligations to the Credit Provider, including:-
   1. Avoiding conflicts of interest.
   2. If a conflict of interest occurs, disclosing that conflict as soon as is reasonably practicable to the parties and advise them to seek independent legal or other advice if required.
   3. Maintaining the confidentiality of the Credit Provider's confidential internal information and procedures that is not related to product disclosure or other services available to the Client.
5. Maintain records required by law and comply with lawful requirements for production of, access to and copying of such records.
6. Provide such information as may be legally required by any regulatory or other authority.
7. Comply with the policies and procedures of the Credit Provider and attend all necessary product training sessions reasonably required by the Credit Provider to satisfy accreditation standards. (As permitted by privacy laws and consented by the Finance Broker and provided that the Client has paid any outstanding amounts owing to the Finance Broker).
8. Co-operating by promptly providing any information or assistance reasonable required by a valuer, lawyer, mortgage insurer or other party necessarily involved in the discharge of the Finance Brokers duties to the Client and/or Credit Provider.
9. When requested by, or previously arranged with, the Client or Credit Provider, providing reasonable assistance with any post settlement liaison between the Client and Credit Provider including communicating any permissible variations in the credit contract, renewal of the term or discharge of security.
10. Assess the Client's ability to meet their obligations under a proposed Credit Facility in accordance with any Credit Facility affordability calculators supplied by a Credit Provider and advise the Credit Provider of any extenuating circumstances affecting the Client's ability to meet their proposed obligations to a Credit Provider.
11. Where appropriate, interview any guarantor or third party to a proposed Credit Facility and advise them of their general obligations and extent of their liability and record the giving of such advice on the Client's file.

Credit Applications and Contracts

1. Ensure Credit Providers are provided with all information required by them, or otherwise reasonably expected by them to determine the identity, personal or business circumstances, financial position, credit history and credit worthiness of the Client.
2. Ensure Credit Providers are provided with all available information relating to the proposed security for a loan or Credit Facility to assist in correctly identifying the property or goods.
3. Maintain written reasons for recommendations given to Clients and any variation subsequently sought by the Client or imposed by the Credit Provider.
4. Promptly provide the Client's credit application and supporting information to the Credit Provider following completion and signing by the Client where required, including any Privacy Act and disclosure documents required by the Credit Provider.
5. Make all reasonable additional enquiries regarding the Client's identity, personal circumstances, business, credit history or financial position that may assist the Credit Provider in making an informed decision.
6. Promptly advise the Credit Provider if a credit application is withdrawn by a Client or if there is a delay in providing any further information required from the Finance Broker, Client or other party.
7. Take reasonable steps to promptly make available to the Client copies of any finance approval correspondence, indicative offers of finance, loan contracts or security documentation as may be required by the Credit Provider.
8. Take reasonable steps to obtain from the Client and promptly convey to the Credit Provider, additional information and documents reasonably required by the Credit Provider.
9. Advise the Client in writing of the Credit Provider's fees and other charges, showing any fees charged to the Client by the Finance Broker separately, prior to the Client accepting an offer of finance from a Credit Provider.
10. Promptly deal with any variation in the Client's requirements and pass on such requests to the Credit Provider.
11. Promptly advise the Client of any variation in the terms and conditions available from the selected Credit Provider that differ from those originally advised and retain a written record of such variations, with reason given by the Credit Provider and the Client's reaction and subsequent instruction.
12. Check the accuracy of the Credit Provider's Credit Facility contract and relevant security documentation by comparison with the Client's requirements. (Except in instances where the Credit Provider and Client are in direct contact or communication and the relevant documents are not provided to the Finance Broker.)
13. (As permitted by privacy laws and consent held by the Finance Broker and provided that the Client has paid any outstanding amounts owing to the Finance Broker).Promptly provide any information or assistance reasonably required by a valuer, lawyer, mortgage insurer or other party acting under instructions from a Client and/or Credit Provider.
14. When requested by, or previously arranged with, the Client or Credit Provider, provide reasonable assistance with any post settlement communication between the Client and Credit Provider including advising any permissible variations in the credit contract, renewal of the term, discharge of security or default under the Credit Facility.
15. Not knowingly be a party to or participate in any deliberate nondisclosure or misrepresentation of any facts pertaining to the Client, Credit Provider, the credit facility being arranged, the circumstances of the transaction or the security being taken.

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