Comply with Financial Services Regulation and Industry Codes of Practice (FNSFMK515)
The regulatory frame
FNSFMK515 requires knowledge of the National Consumer Credit Protection Act, the Australian Credit Licence regime, the Corporations Act where relevant, and the industry codes. Candidates must understand responsible lending, disclosure obligations, privacy, anti-money-laundering obligations and the role of ASIC.
Concepts to master
- Australian Credit Licence obligations and credit representative status.
- Responsible lending: verify, assess, document.
- Disclosure: credit guide, quote, credit proposal disclosure document.
- Privacy Act and Australian Privacy Principles.
- AML/CTF: customer identification and suspicious matter reporting.
- Industry codes and their enforceable obligations.
Traps in questions
Questions often test whether a document was provided at the right time - for example, the credit guide must be given early, not at settlement. Another trap is confusing ASIC's role with that of AFCA (the external dispute resolution body). Watch for answers that treat a code as optional guidance rather than an enforceable obligation.
Rule of thumb
Right document, right time, right client. Timing and recipient are as important as content.
Worked example
A broker meets a new client. Before providing credit assistance, they give the client the credit guide and a quote, then proceed to the fact-find. Providing the credit guide at settlement would breach the timing requirement.