Q&As for the updated compliance documents March 2019.
- Why can’t I see the new Lender Data Section and other updated information in my Credit Guide?
You may be using a non-Master credit guide. Generally, this is because you have created a tailored credit guide for your business.
You can verify this by accessing Mercury/ Documents tab/Merge templates/Loans - Compliance. If you can see another version of the of the Credit Guide (other than the MASTER versions) this is your non-Master Credit Guide (see example below).
If you delete your non-Master Credit Guide, then Mercury will automatically revert back to using the MASTER Credit Guide
Once you have deleted your non-Master Credit Guide you can make the updates specified in the following wiki article: https://support.connective.com.au/hc/en-us/articles/360015709914-Combined-Industry-Forum-CIF-Broker-Reporting
- Why are there two top 6 lender tables?
The table under the heading Our Lender Panel – Credit Providers, discloses to your clients your Australian Credit Licensee’s (ACL’s) top six lenders based on the last 12 months settlements by dollar value. If you are also a Credit Representative, then there will be another list that provides the same data based on your settlements by dollar value. This is rolling data and is updated monthly. NB: The top 6 lenders are not in volume order.
The table under the heading ‘Lender Data’ is based on the Combined Industry Forums recommendations. This discloses your top 6 lenders based on settled deals by dollar value for the last full financial year. This information will only be updated once per year following the end of the next financial year.
- Is the information under lender data based on the number of applications or loans settled?
The wording in the Credit Guides will soon be updated to better specify the methodology. The data in this section is based on settled loans by dollar value, not the number of loans settled, or applications submitted.
- How have you worked out who are my top six lenders
The top six lenders are based on lenders who you have settled the most business with by dollar value for both tables.
- Why do I have less than 6 lenders on my top 6 lenders list
If you only see 5 or less lenders this means you have settled loans with 5 or less lenders in the applicable timeframe.
If you have used any off-panel lender’s then this information will have to be added manually.
- What happens if I have not been in Business for the full 12 months of the last financial year?
You can add a disclosure to your data to state that you have not been in in business for the full 12 months.
Suggested wording: ‘I commenced with <insert company> on <insert date> and the information provided is from this date until the end of the financial year’.
- What happens if I am completely new to the business and have no data for the previous financial year?
You can remove the tables under the Lender data section and add the following:
This section would provide information about the lenders I am accredited with, number of lenders used, my top six lenders and the percentage of settlements with lenders over the last full financial year. Please note that I became a Credit Representative of Connective Credit Services Pty Limited on <INSERT DATE> therefore there is no settled data for the financial year 2017-18.
- I have my last financial years data from my previous business, can I add this information?
Yes, you can by manually updating your lender data into the tables.
- Is it just the Credit Guide that has been updated?
No. If you have access to ‘Preferential service offerings and programs’ (also known as tiered servicing) provided by one or more lenders and this lender(s) is selected in the Preliminary Assessment and Credit Proposal Disclosure you will need to make a disclosure to your client. We have added the relevant disclosures into the Preliminary Assessment and Credit Proposal Disclosure, you will need to update amend the relevant section. If the lender(s) are not applicable then delete, alternately if applicable then you will need to include the disclosure.
- I need to add a lender to my top 6 lenders table (lender data), how do I work out the percentages?
The percentages are calculated on the amount settled with each lender over the last financial year. One way to work this out is to divide the amount settled with each lender by the total loan amount settled, then multiply by 100. Please see example below.
Westpac 1 loan total $350,000 350,000/2,510,000x 100 = 13.94%
ANZ 2 loans total $800,000 800,000/2,510,000x 100 = 31.87%
ING 2 loans total $620,000 620,000/2,510,000x 100 = 24.70%
Bankwest 1 loan total $240,000 240,000/2,510,000x 100 = 9.56%
Bluestone 1 loan total $320,000 320,000/2,510,000x 100 = 12.76%
Pepper 1 loan total $180,000 180,000/2,510,000x 100 = 7.17%
Total loan amount settled $2,510,000