AFG Credit Representative Agreement – MARs (Individuals) v5.0
AFG Credit Representative Agreement for Member Authorised Representatives (MARs) - Individuals
APPOINTMENT OF CREDIT REPRESENTATIVES – INDIVIDUALS
Under this document we appoint you as our credit representative.
If you have any sub-contracting loan writers, they will be appointed by us under a separate
document,
You should check all the information in this document is correct, have it fully signed, retain a
hard or soft copy, and return it to us. We will notify ASIC of the appointments.
Information Schedule
Our details (us/we): Australian Finance Group Limited (AFG)
22 Delhi Street
WEST PERTH WA 6005
ACN: 066 385 822
License Number: 389087
Your details (you): [NAME]
[Address]
[ADDRESS]
EDR Scheme:
Membership number:
PI Insurer:
Policy No:
Amount of cover:
Expiry date:
1. Appointment of you as our credit representative
We hereby appoint you to engage in the credit activities specified in Schedule 1 on our behalf.
You accept this appointment and agree to the terms of this document by signing and returning
this document .Any appointment is subject to the absolute discretion of your State BDM and/or
State Manager.
Your appointment commences on a date we notify you after we have received this document
signed by you. We may terminate or amend your appointment at any time.
2. Information about you
You represent and warrant to us that you:

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are not subject to a banning order or disqualification order in relation to any credit
activities
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AFG Credit Representative Agreement – MARs (Individuals) v5.0

are a member of the ASIC approved EDR scheme specified in the Information Schedule

are not banned from engaging in a credit activity under a law of any state or territory

have not been convicted within the last ten years of serious fraud and are not subject to
any order under the Crimes (Criminal Organisations Control) Act 2009 (NSW) or the
Serious and Organised Crime (Control) Act 2008 (SA) (‘Serious fraud’ means an
offence involving fraud or dishonesty punishable by imprisonment for three months or
more)

are not registered, licensed, or appointed (other than pursuant to this document) as a
credit representative under the National Consumer Credit Protection Act 2009 (Cth)

have not had an industry or business license issued by a proper authority refused,
suspended, withdrawn or cancelled

have not been a director of a company which has gone into voluntary liquidation or to
which a receiver, provisional liquidator, liquidator, scheme manager or official manager
has been appointed while you were a director, or within six months after you ceased to
be a director

are not an undischarged bankrupt, have never been declared bankrupt, and are not now
insolvent

have never been refused membership of a statutory professional body or other body in
respect of your professional capacity

have never been subject to disciplinary proceedings or been expelled by a statutory
body, professional or other body in respect of your professional capacity

have never been dismissed or had any proper authority withdrawn on ethical or legal
grounds

have never had any past or pending claims made against your own professional
indemnity insurance under which you operate in relation to advice you have tendered

have never been refused professional indemnity insurance

have never been denied accreditation by a lender
3. Evidence / Documentation required

CRAA check / credit check / bankruptcy check no more than 3 months old

Australian Federal Police check no more than 12 months old

PI Insurance Certificate of Currency (with your name listed on the Certificate of
Currency)

2 professional references

Direct Debit Agreement
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
4. Conduct as a credit representative
You:

must engage in credit activities honestly, efficiently, fairly, in good faith and avoiding
conflicts of interest

must conduct business as our credit representative in accordance with procedures
specified by us from time to time

upon our request, must provide any information or documents requested by us regarding
your activities as our credit representative

are liable for any breach of any law including the National Consumer Credit Protection
Act 2009 (Cth) arising from your conduct or inaction

must comply with all applicable laws, statutes and regulations and licensing
requirements, including the National Consumer Credit Protection Act 2009 (Cth), the
Privacy Act 1988, the Australian Securities and Investment Commission Act 2001, the
Trade Practices Act 1974, Anti-Money Laundering and Counter-Terrorism Financing Act
2006

must comply with the National Privacy Principles as set out in the Privacy Law

must comply with all rules and regulations of any industry body of which you are a
member

must comply the AFG’s Code of Practice, the Applicant Identification Procedures and the
FSR Compliance Agreement Acknowledgement included in Schedule 2

must not accept appointment as a credit representative of any other licensee or obtain
an Australian Credit Licence without our prior written consent

cannot sub-authorise or appoint credit representatives. AFG will sub-authorise any credit
representatives who are sub-contracted to you

acknowledge that the appointment as our credit representative does not make you our
employee or general agent

authorise us to lodge any returns at ASIC regarding your appointment, termination,
change to particulars, or otherwise connected with your appointment as our credit
representative

must not say or do anything which may bring us into disrepute

must supply us with evidence supporting compliance with this document promptly on
request

acknowledge that in acting as our credit representative you are providing services to our
panel lenders and other members of the public.
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
5. General AFG Conduct obligations
You

must ensure that when witnessing signatures on documents that each signatory is
present and you must take sufficient care to ensure you are satisfied that each signatory
is who they claim to be

must use your best endeavours to verify the accuracy of information and authenticity of
attachments to all loan applications submitted for approval

must use your best endeavours to disclose to the customer all the relevant details of the
products and services being offered to that customer

must ensure loan submissions do not include statements and/or claims that are
misleading and/or misrepresentative

must not offer advice to borrowers without sufficient accreditation

must deal with all enquiries and loan applications in an efficient and professional manner
and in a time frame acceptable to industry standards

must have a good understanding of and abide by all legislation and practices of the
mortgage industry

must conduct your business in a fair and ethical manner on all occasions

must have suitable qualifications and experience relevant to the functions you perform
and ensure you undertake training and study to keep your skills up to date in accordance
with our guidelines

must comply with our current Applicant Identification Procedures Checklist.
6. Claims and breaches
You must promptly inform us of:

any claim that is made or threatened against you; and

any breach of any law, including in particular the National Consumer Credit Protection
Act 2009 (Cth)
in respect of the conduct of your business as our credit representative.
7. PI insurance
If you currently have professional indemnity insurance, you

must whenever we request it provide evidence to us of your professional indemnity
insurance

warrant that the insurance details specified in the Information Schedule are correct

must maintain your professional indemnity insurance for six years after you cease to be
our credit representative

must not change the terms of the professional indemnity insurance without our prior
written consent
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AFG Credit Representative Agreement – MARs (Individuals) v5.0

must become a member of the AFG PI insurance program that is currently managed by
Lloyds of London at the time for renewal of your insurance.
If you do not currently have professional indemnity insurance, you must become a member of
the AFG PI insurance program that is currently managed by Lloyds of London before you
commence to act as our credit representative.
8. EDR membership
You must maintain membership of the ASIC approved external dispute resolution scheme
specified in the Information Schedule throughout the term of your appointment as our credit
representative and for at least one year after termination of that appointment.
9. Experience / Competency and Education
You

must have completed a Cert IV in Mortgage / Finance Broking at the time of
authorisation

must undertake sufficient professional development to meet the requirements of the Act
and will attend specific AFG PD sessions from time to time (approximately 20 hours per
year)
must using our system introduce to our panel lenders a minimum of two loan
transactions which proceed to settlement each calendar month

10. Technology
You

must use FLEX to lodge all applications (for commission claim purposes)

must ensure that the required credit documentation is generated from FLEX to meet the
requirements of any laws and our procedures

must have a robust customer relationship management system in place, which as a
minimum allows you to maintain up to date contact details for your customers and allows
you to maintain contact with them at least on a bi-annual basis
11. Notification of change
You must inform us promptly and in any event within two business days of any change to your
name or business address.
12. Indemnity
You hereby indemnify us on a continuing basis against all or any actions, suits, claims,
demands, losses, damages, liabilities, costs and extensions of any nature (including without
limitation civil and criminal penalties) suffered or incurred by us at any time actually or
contingently arising directly or indirectly out of your conduct as our credit representative or
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
arising directly or indirectly from any breach by you of a term of this document. This indemnity
continues despite the termination of your appointment as our credit representative.
13. Investment
You will pay a monthly fee in accordance with your Direct Debit Service Agreement to maintain
your authorisation as our credit representative. This amount will be charged on the 15th of each
month and will debited to your nominated account. If this payment is not made your credit
representative authorisation may be revoked.
14. Additional obligations
The obligations set out in this appointment are in addition to any obligations arising under any
other documents or arrangements between us. For example, if there is an origination
agreement or Member Agreement between us, the obligations in this document are in addition
to those set out in the origination agreement or Member Agreement.
Signed by MEMBER:
Authorised officer signature
Name
Date
Signed by YOU in the presence of:
Signature
Witness Signature
Print name
Print name
Date
Date
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
Signed on behalf of AUSTRALIAN FINANCE GROUP LIMITED:
Authorised officer (Director/Company Secretary)
Print name
Date
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
Schedule 1 – Authorised credit activities
You are authorised to provide credit services as defined in s 7 of the National Consumer Credit
Protection Act 2009 (Cth), but only in respect of loans and other products introduced through
lenders and other product suppliers:

forming part our panel of suppliers; or

otherwise approved by us from time to time.
This appointment does not authorise you to provide credit services in respect of loans or other
products other than as specified above.
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
Schedule 2
APPLICANT IDENTIFICATION PROCEDURES
In order to reduce the risk of fraud, it is an essential precondition of the referral of an application
to AFG that you personally interview and identify each applicant.
The procedure to be followed is:
(i)
The person who conducts the interview (the Interviewer) must have face-to-face
interview with each applicant.
(ii)
During the interview, the Interviewer must establish that the applicant can speak English
sufficiently to understand the nature of the transaction. If this is not the case, AFG must
be informed accordingly and informed which language the individual understands best.
If the Interviewer cannot converse fluently in the language the applicant is most
comfortable with, the Interviewer must utilise the services of an interpreter to assist with
the interview and confirm to AFG that this has occurred.
(iii)
The Interviewer must identify each applicant by original photo-identification. This can be
done by sighting a Driver’s Licence or Passport or some other photo identification card.
If the applicant fails to produce original photo-identification, the Interviewer must
determine whether or not this identification is available (but simply not in their
possession at that particular time) and, if so, a further appointment must be made to
complete identification. If the Interviewer is satisfied that the applicant does not possess
any photo identification whatsoever, the Interviewer must have the applicant produce
their credit card(s), obtain a specimen signature from them during the interview and
compare that signature with the signature on the card.
(iv)
Where a company is involved all office bearers must be identified in this way.
The above procedure must be followed at all times unless:
i.
the Member is of the opinion that the above procedure is inappropriate due to
circumstances specific to the Member's business model; and
ii.
the Member has obtained AFG's written consent to waive the requirement for the
Member to follow this procedure."
(v)
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The member must sight the original supporting documentation to each loan application
e.g. Banks Statements, Pay Slips, Tax Returns & Company Financials Statements and
any others documentation used to support the loan application. The Member must
retain copies of the relevant supporting documentation with the loan file
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AFG Credit Representative Agreement – MARs (Individuals) v5.0
FSR COMPLIANCE AGREEMENT ACKNOWLEDGEMENT
In order to comply with several regulatory obligations which AFG (and its associated
companies) has under the Corporations Act as an Australian Financial Services Licensee or
otherwise, you are prohibited from giving financial product advice and providing any financial
services, or influencing in any way, the purchase or dealing of any regulated product as defined
under the Financial Service Reform Act (“FSR Act”), unless you hold an Australian Financial
Services Licence or are authorised by a licence holder in accordance with the Corporations Act.
You must only discuss factual information with the Applicant on matters which pertain to
products that are not considered ‘regulated’ under the new FSR Act.
In introducing or referring applicants to a particular panel lender, you must only inform the
applicant that the particular panel lender, as the licensee (or one of its representatives) is able
to provide a particular financial service or class of financial services and give the contact details
of that particular panel lender (or if applicable its representatives).
You must disclose to the applicant any benefits (including commission) that you or your
associates are entitled to receive as part of referring or introducing applications to a particular
panel lender.
In relation to the FSR Act, you must not do anything that will bind AFG to anyone, or to do
anything contrary to the above, without prior written approval from AFG.
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