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Ongoing Requirements for ACL holders

Posted on December 22nd, 2015 by Sophie Gerber in ACL Compliance

clipboard-27848_1280Australian Credit Licence (ACL) holders have a range of compliance obligations which must be met to ensure compliance with the law. Many of these obligations are commonly overlooked in the course of running the business. Sophie Grace can assist ACL holders to comply with all of their obligations.

  • Implement a compliance program – Sophie Grace can prepare all the required compliance documents and help you keep them up to date. Our compliance program includes a Calendar of Obligations to ensure you don’t miss any important dates.
  • Keep your compliance documents up to date – many changes can impact whether your documents are current, including changes to your business and changes to the law. ACL holders must review their compliance documents on a regular basis. Sophie Grace can assist by completing a compliance review to assess the status of your current documents and make updates where required.
  • Implement a compliance committee which meets regularly – this committee (a group of people in your organisation who have responsibility for the ACL’s functions – including the directors and Responsible Managers on the ACL) should meet on a regular basis to discuss the compliance obligations of the ACL and whether they have been met.
  • Appoint a compliance manager – there should be someone in your business who is responsible for compliance. They should have the appropriate level of seniority and competence to complete this role.
  • Keep track of complaints – ACL holders must have adequate internal dispute resolution procedures to ensure complaints are dealt with in a timely and efficient manner. Sophie Grace can assist in implementing and documenting the appropriate procedures.
  • Become a member of an External Dispute Resolution Scheme (EDRS) – for example, the Financial Ombudsman Service (FOS) or the Credit and Investments Ombudsman (CIO).
  • Record your conflicts of interest – identifying conflicts of interest and recording them in a register is an important step in managing conflicts. Sophie Grace has a template register which is part of our suite of compliance documents available for purchase.
  • Review your marketing material – most ACL holders issue marketing or promotional material as part of their business operations. All material should be in line with ASIC’s guidelines and the relevant legislation. Sophie Grace can assist credit licensees to meet their obligations by reviewing marketing material before it is released.
  • Complete CPD training – Responsible Managers must ensure they complete the required CPD points every year.
  • Update your training registers – all training completed by Responsible Managers, and other staff, should be recorded in a staff training register. Sophie Grace has a template register which is part of our suite of compliance documents available for purchase.
  • Provide ongoing training for representatives – all staff who provide credit services should receive training in the legislative obligations of the ACL holder.
  • Complete your Annual Compliance Certificate – Sophie Grace can assist licensees complete the Annual Compliance Certificate to ensure it is completed accurately and lodged on time.
  • Monitor service providers – most ACL holders outsource a number of functions and these service providers should be monitored and reviewed for their performance on a regular basis. Sophie Grace can assist ACL holders to implement a formal system for monitoring service providers.
  • Manage your risk – ACL holders are required to have adequate resources and risk management systems in place. Sophie Grace can assist ACL holders to implement and document appropriate risk management procedures.
  • Report breaches – Sophie Grace can assist ACL holders to document their breach reporting policies and ensure breach reports are sent to ASIC within the required timeframes.
  • Have adequate insurance (known as compensation arrangements) – ACL holders who don’t fall under an exemption in the National Consumer Credit Protection Act 2009, will need to hold Professional Indemnity (PI) insurance.  Some ACL holders have an exemption in place for PI insurance, and must ensure they continue to meet the terms stipulated by ASIC to maintain that exemption.

Sophie Grace is able to provide ongoing compliance support to ACL holders to ensure your ACL is maintained and you meet each of these compliance obligations, or conduct a once-off review of your compliance.

If you would like to obtain further information or assistance, please contact Sophie Grace directly.

Alicia Pevely

Alicia works with Sophie Grace Pty Ltd with a particular focus on compliance and legal services. She assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support as well as assisting in the preparation of legal advice, commercial agreements and disclosure documents.