For brokers, compliance is an integral part of maintaining a trustworthy and transparent lending process. The Audit Checklist for Brokers serves as a guideline to ensure that all necessary documentation is in place, regulatory requirements are met, and client interests are protected. By following this checklist, brokers can mitigate risks, streamline loan processing, and ensure adherence to Oxcel Pty Ltd’s compliance framework under Australian Credit Licence regulations.
Key Compliance Areas for Brokers
1. Client Documentation and Verification
Brokers must ensure that a Credit Guide and Privacy Consent Statement is completed and signed by the client.
A fully completed Client Profile must be on file, ensuring all relevant sections are filled in.
Client Profiles should be updated within 90 days to maintain accuracy.
Identity verification must follow AML/CTF obligations, with valid ID copies, signed and dated.
2. Loan Suitability and Product Comparisons
Brokers must provide a product comparison report with at least three loan providers. If fewer, a diary note should justify the choice.
A Preliminary Assessment and Credit Proposal/Recommendation should be completed, signed, and aligned with the lender options in the product comparison.
Fees and charges must be clearly outlined in the Credit Proposal to ensure transparency.
3. Employment and Financial Verification
PAYG clients must provide three months' bank statements reflecting salary deposits as per payslips.
Self-employed clients must provide evidence of business registration, tax returns, and financial statements for the last two years.
Employment verification should include an ABN lookup and a Google search of the employer/company.
4. Loan Processing and Compliance Checks
The loan serviceability calculator should be on file and match the requested loan amount.
If a rental property is being purchased, evidence of rental income must be provided, including a real estate agent’s rental letter.
If the loan is for refinancing, the last 3-6 months of loan statements must be held on file.
5. Additional Compliance Considerations
If a non-face-to-face interview was conducted, the broker must provide adequate diary notes and certified supporting documents.
For Power of Attorney applications, the person acting on behalf of the client must be verified in line with AML/CTF obligations.
If the loan includes an Interest-Only component, a Risk/Benefit Statement must be provided to justify the product choice.
Compliance documentation must be uploaded to iOutsource to facilitate an efficient audit process.
Ensuring a Seamless Audit Process
By following this checklist, brokers can demonstrate due diligence, reduce audit risks, and maintain compliance with Oxcel Pty Ltd's regulatory framework. Proper documentation and adherence to compliance policies ensure smoother loan processing and build credibility with clients and financial institutions.
For any compliance-related queries, brokers are advised to contact Oxcel’s compliance team or refer to the complete Audit Checklist for Brokers document.
Download the full PDF here.