Yellow Brick Road upgrades credit licence structure following ASIC concerns

The finance arm of Yellow Brick Road has changed the way it authorises companies and individuals that offer home loan advice under its Australian credit licence, through its 150 plus franchise network.

This following concerns from ASIC.

YBR Finance has directly authorised over 100 individuals working in YBR branches as credit representatives (loan writers).

ASIC considered that the national credit licensing framework also required YBR to authorise the companies which operate the branches as the companies also act as intermediaries between the licensee and the consumer. 

ASIC acknowledges YBR's co-operation in responding to this issue and says the franchise group is now in the process of authorising the corporate entities directly under its licence.

Those entities can sub-authorise employees or they can be directly appointed under YBR’s credit licence.