Lendi backs move to expand broker powers

The online broking platform has expressed support for a revision to ASIC’s responsible lending guidance that would enable brokers to provide product suggestions to clients prior to verification.

Appearing before the Australian Securities and Investments Commission (ASIC) in its second round of public hearings regarding a proposed update to its responsible lending guidance (RG 209), Lendi co-founder Martin Lam called for further clarification relating to what level of assistance a broker can provide to a consumer before verifying their financial position.

Mr Lam acknowledged the need for verification prior to the recommendation and facilitation of a particular credit contract but highlighted the need for better guidance relating to what services a broker can offer to clients prior to verification.

“We see there being an asymmetry in those requirements between credit assistance providers and credit providers,” he said.

“Credit providers are able to provide additional approvals subject to verification, whereas credit assistance providers can’t.”

Mr Lam noted that in the current guidance, there is a reference to what requirements a credit assistance provider has to meet before providing a “suggestion” to a customer, which includes inquiring about their needs and objectives and their financial circumstances before verifying their financial position in order to make an assessment.

To read more, please click on the link below…

Source: Lendi backs move to expand broker powers – The Adviser