Yellow Brick Road Finance (YBR) has been required to change the way it authorises the companies operating its branches in line with recent changes to the national credit licensing framework.
YBR operates over 150 branches through a network that assists consumers to apply for credit contracts.
According to the Australian Securities and Investments Commission (ASIC), YBR has directly authorised over 100 individuals working in its branches as credit representatives.
Under its recently updated Regulatory Guide 203 ‘Do I need an Australian credit licence?', the regulator considered the national credit licensing framework also required YBR to authorise the companies which operated the branches.
YBR is now in the process of authorising the corporate entities under its licence, and those entities can sub-authorise employees or they can be directly appointed under YBR's credit licence.
"It is important for all credit licensees to consider carefully how each party they deal with is authorised or licensed," ASIC stated.
"This helps to ensure that all parties involved in the loan application process are identified, and also strengthens access to external dispute resolution."
