It literally brings revolution to the world of consumer credit. Which segments will be affected? We can safely say that all – from providers to consumers to intermediaries. We have already written about consumer and provider changes in the New Consumer Credit Act: How specifically will it affect money lending? and the Cream Bank takes over consumer loans. What will be the impact on distribution?
Therefore, in this article we will look at a more detailed look at changes in mediation. What will be the new requirements for the expertise of financial and mortgage advisors?
Professionalization is a new standard
First and foremost, counselors will have to demonstrate the achievement of ‘general knowledge’ at the level of the school-leaving examination . If the counselor does not even have a school-leaving examination, under the new legislation it can be replaced by at least 3 years of continuous previous experience in the field. While the recognition of experience has not yet clearly defined conditions, a transitional period of 42 months has already been set for obtaining the school-leaving examination. It is also expected that the Cream Bank will continue to discuss this issue. Above all, it is necessary to clarify the way of demonstrating the practice and the fields from which it will be recognized.
Did you know that new lenders will now have to apply for a license with the Cream Bank within six months of the law coming into force?
The consultants will also have to pass a professional examination with an accredited person. Questions for the exam are guaranteed by the Cream Bank. All intermediaries will have to pass the exam no later than two years after the amendment becomes effective. During this period, the test may be replaced by an affidavit, the form of which is still under discussion.
Intermediaries will be entered in the Cream Bank’s register
The Cream Bank will not only supervise the professional competence of credit intermediaries – it will also register them. Enrollment in the register will cost each agent two thousand dollars and will always be for 12 months . Each extension of one year will cost the intermediary another thousand dollars. In addition, to register in the register will need a request from a superior, a mortgage broker or consulting company.
What will the registry do? Every consumer will now have the opportunity to obtain information about intermediaries before taking credit. They will also be able to search by expert groups, collaborators, date of establishment or termination of authorization, and so on. The register will also contain traceable penalties from the Cream Bank and information on liquidation or bankruptcy.
We will prepare you for the Cream Bank exams
At our brokers we pay attention to perfect professional training . Therefore, in addition to regular education and training, we will also prepare you for the credit tests of the Cream Bank. We can do that too – in the ranks of our brokers is almost 100% success of their composition.
Do you want to learn Cream Bank questions quickly?
We recently created something very, but very useful for our brokers. It is a quick and effective preparation for the compulsory proficiency tests that all advisors will have to pass according to the Cream Bank regulation. You can also download the app for free. You will move faster.