NCCP Document Update – Are you using the most up to date docs?

July 3rd, 2017

Our Compliance Team have made some changes to the Credit Guide and Needs Analysis documents available in Mercury to keep them up to date with your obligations under NCCP with regard to transparency and Responsible Lending best-practice. These new documents will be available today – Monday July 3. Please use them for all new loans moving forward.

What do these updates include?

Credit Guide: The updated Credit Guide available in the Mercury Compliance Wizard will now include a notification of Macquarie’s non-controlling interest in Connective Broker Services. The following clause has been inserted to address our obligations regarding transparency and disclosure:

Macquarie Bank Limited has a minority, non-controlling interest in Connective Broker Services Pty. Ltd. Commissions paid by Connective’s lender panel are transparent and do not influence the broker or consumer choice. Connective is committed to quality consumer outcomes in all circumstances.

Needs Analysis: Several amendments have been made to the Needs Analysis document in order to address recent regulatory changes and to assist you in providing more accurately tailored lending solutions for your customers. These amendments cover:

• A Product Page update to include additional product features such as multiple offset accounts and rate lock.

• The requirement to collect Tax Residency Information. Under the Common Reporting Standard (CRS), banks are now obliged to collect and maintain information about the foreign tax residency of their customers. New mortgage customers will need to confirm if they are a tax resident of a foreign country. If your customer is a tax resident of a foreign country, you are now required to collect the following information and provide it to the lender: The name of all countries where the individual is a tax resident, and the relevant Tax Identification Number (TIN) for countries other than Australia where the individual is a tax resident.

• Monthly Living Expenses. New classifications have been added to the Needs Analysis in line with LIXI standard categories. These categories require borrowers to provide a detailed list of both household and discretionary spending. (LIXI is the industry body created to develop and maintain industry standard approaches to capture Responsible Lending requirements that enable efficient transaction processing for the lending sector.)

Want to know more?

Your local Compliance Support Manager is always available to answer any questions you may have. To get in touch, simply click on your Help icon in Mercury and select ‘Compliance’. Alternatively, email us directly at compliance@connective.com.au and we’ll be happy to help.