Frequently Asked Questions
What is the primary purpose of my compliance report?
The purposes of your report are twofold. The first thing is that good news or bad news, QED CompliFast tells you where your business stands in terms of compliance. So even if it's all bad news, at least you know what you need to do to fix the situation. This gives you peace of mind so you can move on and concentrate on sales.
Secondly, the QED CompliFast reports are for other interested parties such as ASIC, your Aggregators, Lenders etc, who might want to know how you are performing against your obligations. For these parties QED CompliFast is your evidence of what you have been doing to monitor compliance in your business. Even if the reports don't look good, these stakeholders will only be interested in how you implemented the recommendations of QED CompliFast.
What do I do with my report when it's generated?
QED CompliFast generates a comprehensive 25 page report on a Licensee's state of compliance. The reports are generated as PDFs and can be printed or you can save them on your computer (there is no need to save them though, as they can always be accessed through your QED CompliFast login).
There is an executive summary that indicates whether your business's compliance is satisfactory, needs improvement or unsatisfactory and it will list recommended corrective actions.
The detailed report will discuss further any actions required. You then act upon those recommendations. That way if ASIC ever audit your business, you can show where you have taken action to be compliant.
How to I access my previous QED CompliFast reports?
Each time you login in to QED CompliFast you will be able to see all of your previous reports.
Who sees my compliance reports?
As a Licensee compliance reports are for your use only. QED CompliFast does not share any of this information with Aggregators or ASIC.
If I'm not writing many loans at the moment, why do I need QED CompliFast?
One of the main messages of QED CompliFast is that your Licensee obligations go way beyond your Responsible Lending practices. Even if you aren't writing much business at the moment there are still many things that ASIC expects you to monitor as a Licensee. These are things that QED CompliFast exclusively tracks for you.
I check my loan files, shouldn't that be enough?
The short answer is No. Meeting the criteria for Responsible Lending is only one of the obligations a Credit License must meet to maintain their Australian Credit Licence.
The "General Conduct Obligations" include:
- arrangements for dealing with conflicts of interest
- arrangements for ensuring compliance with the legislation
- training and competence structures
- being a member of an external disputes resolution scheme and having an adequate internal disputes resolution scheme (a complaints policy)
- having adequate compensation arrangements
- having adequate resources to provide services, including HR, IT and financial resources
- having an adequate risk management system in place
Compliance is just as much about the demonstration of compliance as it is about the compliance itself. A Credit Licensee needs to demonstrate they are meeting these requirements, not just that they have a document in place. It sounds like a lot of work, but it needn’t be – set yourself up with the right tools and you only have to do it once. QED CompliFast is the only online self-audit tool for brokers.
I complete my Annual Compliance Certificate each year, what else do I need to do to be compliant?
Completely your Annual Compliance Certificate each year is a requirement to renew your ACL. If you read the questions properly on the ACC, that’s where many brokers have a problem.
Section 225 of the NCCP Act, amongst other things, makes it illegal to make statements to ASIC that are not true. In your Annual Compliance Certificate, when you certify that you have “adequate systems and arrangements in place to ensure…” your compliance with the requirements of your Licence, this means that you have policies and procedures in place regarding how you will comply with your ACL obligations; you will regularly test yourself against these obligations; and that you will take actions to fix any shortcomings you have against those obligations.
If audited by ASIC, you will be required to show evidence of the testing you have in place and the results from that testing. With QED CompliFast, you have access to all your compliance reports to demonstrate you regularly conduct testing and act upon the results.
I now have my Australian Credit Licence. I check my loan files regularly. What else do I need to do to be compliant?
Brokers have been checking loan files before the NCCP Act regulation. This is not new. However an Australian Credit Licensee has many other obligations to adhere to. As well as being an NCCP requirements, many of these obligations are simply good business practice which can you to develop your business.
What does regular compliance testing mean?
Compliance shouldn’t be a burden for Licensees. With the General Conduct Obligations, not everything needs testing all of the time. High risks for a mortgage broking business should be monitored quarterly, with low risks monitored every 12 months. QED CompliFast does it for you. A broker doesn’t need to spend time working out what and how to test their obligations. Rather, QED CompliFast provides the testing framework for brokers to answer.
How much time should I spend on compliance?
As long as it takes! For mortgage brokers, using QED CompliFast will take around 3 hours per quarter, instead of taking a few days to work out what needs to be tested and why. Compliance doesn’t need to be a burden, we’re sure you would much rather be writing loans than conducting compliance testing.
How does QED CompliFast work?
QED CompliFast is an online service that is fast and easy to use and will give you confidence to meet all your ASIC obligations, not just some of them.
In just 4 simple steps, with QED CompliFast you can conduct your quarterly compliance monitoring with ease.
Step 1: Education
Download and read the quarterly information pack that details current compliance issues and the questions that will be asked in the current quarter. MFAA and FBAA CPD hours available.
Step 2: Assessment
Complete your compliance monitoring on line by answering the questions with assistance from the information pack.
Step 3: Feedback
When you submit your answers, QED CompliFast will immediately generate a comprehensive compliance report which not only rates your performance but provides a corrective action plan for any “needs improvement” issues identified. You can then take the action required.
Step 4: Easy Access
You will always have access to all of your compliance reports if ASIC audits your business. They are also a useful tool for your business planning.