ASIC Regulatory Guide 209 Credit Licensing: Responsible Lending Conduct (Australia) rg209-b-lenders-and-brokers: Lenders and brokers each meet their own obligations: a broker's preliminary assessment is not a substitute for the lender's, the lender forms its own view of information received from a broker and has processes to test its reliability

What does rg209-b-lenders-and-brokers require?

The obligations apply separately to credit assistance providers (whose assessment is a preliminary assessment) and to lenders, and the services differ: brokers may reasonably make more detailed inquiries about requirements and objectives across products, and lenders are responsible for the final decision. A lender cannot simply rely on a broker's assessment; it must form its own view about the information and whether the inquiries and verification were adequate, have processes to ensure the reliability of information received through third parties, must not rely on information where there are reasonable grounds to doubt it, and should act on doubts (for example by verifying directly with the consumer). Where applications come through third-party channels the lender should have arrangements to monitor the quality of applications by channel.