Course outline. Introduction to Consumer Credit. Financial Education Professionals Pty Ltd 1

Transcription

1 Course outline Introduction to Consumer Credit Financial Education Professionals Pty Ltd 1

2 CONTENTS Introduction to Consumer Credit Topic 1: Participants in the Australian Financial Sector 3 Topic 2 Lending and borrowing products 4 Topic 3 Consumer credit regulation: an introduction 4 Topic 4 Responsible lending 5 Topic 5 Representatives anti-money laundering update 6 Financial Education Professionals Pty Ltd 2

3 Topic 1: Participants in the Australian Financial Sector 1 The financial system and intermediaries 1.1 Intermediation 1.2 Advantages of intermediation Transfer of risk Economies of scale Technical expertise and convenience 1.3 Disadvantage of intermediation 1.4 Intermediaries as market makers 1.5 Technology and intermediation 1.6 Roles played by intermediaries 2 Financial services 2.1 Retail financial services Deposit taking and investment Lending Insurance Financial advice 2.2 Wholesale financial services 3 Central banks 4 Regulation and supervision 4.1 Overview 4.2 Australian Securities and Investments Commission 4.3 Australian Prudential Regulatory Authority 4.4 Self-regulation 5 Market participants 5.1 Banks 5.2 Insurance companies 5.3 Investment managers 5.4 Investment banks 5.5 Australian Securities Exchange 5.6 Chi-X Australia 5.7 Stockbrokers 5.8 Financial planners 5.9 Credit ratings agencies Financial Education Professionals Pty Ltd 3

4 5.10 Custodians 5.11 Credit card companies 5.12 Key support services to the financial services industry Topic 2 Lending and borrowing products 1 Transaction and deposit accounts 2 Loans 2.1 Secured and unsecured loans 2.2 Interest rates on loans 3 Property and mortgages 3.1 Mortgage terminology 3.2 Types of mortgages Topic 3 Consumer credit regulation: an introduction 1 Overview 2 What is consumer credit? 3 Why consumer credit is regulated? 4 State-based regulation 5 The National Consumer Credit Protection Act 6 ASIC as a consumer credit regulator 6.1 ASIC s role 6.2 Principles behind ASIC s approach to regulation 7 Credit Licensing 8 Responsible Managers 9 Responsible Lending 10 Phase 2 of consumer credit regulation 10.1 National cap on costs for small amount contracts 10.2 National interest rate caps 10.3 Enhancements, reverse mortgages and consumer leases Enhancements Reverse mortgages and Seniors protection Consumer leases Financial Education Professionals Pty Ltd 4

5 Topic 4 Responsible lending 1 What is responsible lending? 2 Application of responsible lending provisions 2.1 Application of provisions To what and to whom do the provisions apply? Not just new credit contracts 2.2 Obligations To provide documents To make inquiries Verification of information 2.3 Obligation to make an assessment changes 4 Summary of responsible lending roadmap 5 Landmark 2014 Responsible Lending Court Case 5.1 The Cash Store case 5.2 ASIC Changes to Regulatory Guide 209 Credit Licensing: Responsible Lending Conduct Key changes New ASIC examples 6 Responsible Lending Checklist Financial Education Professionals Pty Ltd 5

6 Topic 5 Introduction to Anti-Money Laundering Laws 1 Changes to the AML/CTF Rules impacting Part B of an AML/CTF program 1.1 Customer due diligence 1.2 Anti Money Laundering Basics Refresher Loan services 2 Part B of an AML/CTF program: Know Your Customer 2.1 When does a credit licensee need to undertake CDD? 2.2 Risk-based customer due diligence procedures 3 Collecting and verifying customer identification information 3.1 The minimum customer identification and verification requirements 4 Ready reckoner 4.1 Safe harbour procedures for individuals with a medium or lower ML/TF risk 5 Responding to discrepancies that arise while verifying customer and beneficial owner information 5.1 The Document Verification Service 6 AML/CTF identification and verification requirements for individual customers: Know Your Customer (KYC) 6.1 Verification of KYC information using reliable and independent electronic data 7 AML/CTF identification and verification requirements for beneficial owners 8 Using the DVS for AML/CTF identification and verification purposes 8.1 High ML/TF risk customers 9 Record-keeping obligations and the DVS 9.1 Applicable customer identification procedure (ACIP) records 9.2 Designated Business Groups (DBGs) 10 Privacy requirements Financial Education Professionals Pty Ltd 6

7 11 Politically exposed persons 11.1 Who is a politically exposed person? 11.2 When does a person cease to be considered a PEP? 11.3 Money laundering and terrorism financing risk associated with PEPs 11.4 Risks associated with different categories of PEPs 11.5 What are the requirements for identifying PEPs? 11.6 PEPs and other legislative requirements 11.7 Privacy considerations 12 Special circumstance and exemptions that apply for CDD obligations 12.1 Pre-commencement customers 12.2 Customer identification procedures carried out by another reporting entity 12.3 Customer identification procedures for low-risk designated services 12.4 Other exemptions in relation to customer procedures Financial Education Professionals Pty Ltd 7