Basically, the job of a credit intermediary is part of the broker division – so he does not lend himself, but he arranges borrowers to appropriate service providers from the financial sector. If he manages to successfully arrange a loan, he receives a commission for this, the amount of which is based on the loan amount. If the lender pays the commission, the costs are usually included in the loan, provided that the borrower pays the fee, the intermediary concludes a separate contract with his client.
Is there an education for the profession?
There is no special training in the profession of credit intermediary. The intermediaries – unlike investment advisers – also have no proof of their qualifications. Anyone who wants to work as a credit intermediary, but requires a trade license in accordance with § 34 c trade regulations, which he receives from the local trade office. There he must prove that he has the necessary reliability and his financial circumstances are organized. For example, a prospective credit intermediary may not have been convicted of a crime in the past five years. The trade license is also denied, however, if the interested party is pending insolvency proceedings. In addition to a police certificate of good conduct, the necessary documents therefore also include information from the relevant insolvency court, a certificate from the tax office for tax matters and an excerpt from the central commercial register.
The requirements change
As there are also numerous credit intermediaries in the sector who are not qualified and many consumers have complained about the inadequate work, an EU directive was adopted, which had to be implemented by March 2016 in all Member States.
The Federal Government has also already submitted a bill to transpose the Directive. However, the rules laid down therein apply initially only to residential credit intermediaries. These must be able to prove their qualification in the form of proof of competence. This should be carried out at the Chambers of Commerce and Industry. However, proof should only be provided to newcomers, but not to long-term intermediaries. One of the planned changes is that a registration requirement should be introduced. The corresponding professional register is also to be kept by the Chambers of Commerce and Industry. It is also planned that mortgage lenders will be required to take out professional indemnity insurance.