As a broker offering credit assistance, you are required to hold a formal written Referral Agreement for any Regulated Referrers that you deal with.
A Regulated Referrer is noted as a:
Real Estate Agent
Accountant
Financial Planner
Solicitor
Business to business referrer - effectively anyone who operates as a business or company.
It is a requirement of ASIC that all licensees hold the Referrer Agreements for all Credit Representatives on a Register. This Register may be reviewed by ASIC as part of the licensing review process.
What is required on a Referrer Register
The Agreements must hold specific information between the two parties.
Required information which must be held on the Agreement is:
Credit Representative's name.
Referrer Business name.
Contact within the business.
Business type.
Address of the business.
Contact phone number of the business.
Date of agreement.
Written agreement held/given.
Remember before getting into an agreement with any potential referrers you should take steps to get to know your Referrer and their business practices. What is the referrer's main business? What area are they located in? These questions are all relevant to the Referrer whom you may do business with.
Referral agreement template
You can locate a template for the Referral Agreement in Mercury Nexus.
In the Documents tab, select Merge Templates from the left-hand panel.
Open the Loans - Compliance folder.
For further guidance please contact our Compliance Support team [email protected]