Reasonable inquiries regarding consumers’ requirements, objectives and financial situation

Licensees are required to conduct an unsuitability assessment to discharge their responsible lending obligations. Part of undertaking this assessment requires licensees to make reasonable inquiries about:

• • the requirements and objectives of the consumer; and
• • the consumer’s financial situation.

This guidance note explains:

• • Who needs to make enquiries and why?
• • When a licensee needs to make reasonable enquiries?
• • Scalability of reasonable enquiries?
• • Different threshold of inquiry for credit providers and credit assistance providers.

The guidance note also provides an overview of prescribed enquiries for specific matters, such as reverse mortgages.

See Reasonable inquiries regarding consumers’ requirements, objectives and financial situation.