We’re introducing a new Mercury Nexus compliance centre.
The easy-to-use workflow will make note taking and documenting evidence quick and simple.
We’re doing this so when the best interests duty (BID) arrives on 1 January 2021, you’ll have the tools to meet your obligations.
From 1 January 2021, credit representatives will be required to use the Mercury Nexus compliance centre. We urge that all our brokers, both ACL holders and credit representatives, start using the compliance centre straight away.
We’ve also made some changes to simplify your process and documentation requirements to assist you to remain BID-compliant.
What‘s changed?
Updated credit guide. We’ve expanded the Privacy Disclosure Statement so your clients can see how their personal information is being used and protected.
We’ve also included a Privacy Consent form, which your clients are required to sign if they have consented for you to undertake a check report.
The Credit Guide and Privacy Consent form will be available from Monday 7 December 2020.
Updated needs analysis. We have added BID specific questions to better focus on your clients’ regarding their preferred loan features to help you meet your obligations.
Updated Credit Proposal Disclosure. This has been renamed the Summary of Requirements and Credit Proposal. This updated document includes additional information so you can provide your clients with a document that evidences your compliance with BID.
Checklist and declaration. The workflow will replace the need to complete the existing questionnaire.
About the Mercury Nexus compliance workflow
The workflow has been designed to guide you through the steps you need to take to meet your obligations.
We’ve also made some changes to simplify your process and documentation requirements to assist you to remain BID-compliant.
The workflow steps are:
Know your customer – demonstrate that you’ve verified your client's identity.
Requirements and objectives – understand what the client is trying to achieve and how the product type recommended meets their goals.
Financial position – record information regarding assets, income, living expenses, liabilities etc.
Product recommendation and selection – demonstrate you’ve considered sufficient lenders, provided options and documented how the final choice of lender was in the client's best interests.
Conflicts of interest – confirm if conflicts were identified. If there were, use evidence to show was it disclosed and how you have placed the client’s interests above all others.
Statutory documents – confirm you’ve provided the Credit Guide, Credit Proposal Disclosure, and the Preliminary Assessment if required.
Why we’re introducing this
The Mercury Nexus workflow will make documenting the steps you have taken to meet your BID obligations much easier. You’ll also have the flexibility to adapt your existing processes around the workflow and all documents will be stored and easily retrieved for your convenience.
If there’s ever a complaint or an audit, you can easily show you have been BID compliant. The workflow simplifies your tasks and enables you to keep easy-to-find records of client interactions as evidence of BID compliance.
As always, your Partnership Managers are here to help if you have any questions.