ACL Ongoing Compliance Solutions

Credit Licence Compliance Requirements

Australian Credit Licence (“Credit Licence”) holders have a variety of obligations which must be documented and adhered to in order to ensure compliance with the law. Many of these obligations can often be overlooked during the course of running a business. Licensees should ensure they are complying with each of the below requirements (where applicable).

Implement a Compliance Program

Sophie Grace can assist with drafting the required compliance documents for your Credit Licence. Our standard compliance program includes a compliance calendar of obligations so you can see all important dates in one place.

Once your documents are in place, changes to your business, the law and ASIC regulation can impact whether your compliance documents are current. Sophie Grace recommends documents be reviewed on a regular basis and can assist to make updates to reflect new or changed requirements. 

A compliance committee should comprise of a group of people within your organisation who have responsibility for the Credit Licence’s functions – including the Directors and Responsible Managers. Meetings should occur on a regular basis to discuss the compliance obligations of the Credit Licence and whether they have been met.

Someone within your business should have responsibility for compliance. The Compliance Officer should have the appropriate level of seniority and competence to complete the role. 

All licence 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. 

Credit Licence holders are required to lodge their internal dispute resolution data with ASIC every six months. 

Credit Licence holders are also required to be a member of the Australian Financial Complaints Authority (“AFCA“), the ASIC approved External Resolution Dispute Scheme. 

Managing 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.

Most businesses issue marketing or promotional material as part of their business operations. All material should be in line with ASIC’s guidelines and relevant legislation. Sophie Grace can assist Credit Licence holders to meet their obligations by reviewing marketing material before it is released.

All training completed by Responsible Managers and other representatives should be recorded in a training register. Sophie Grace has a template register which is part of our suite of compliance documents available for purchase. 

Responsible Managers and representatives involved in the provision of credit services to clients must ensure they complete the ongoing CPD training each year. 

All representatives should also receive training in the legislative and compliance obligations applicable to the Credit Licence holder. 

Most Credit Licence 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 your business in implementing a formal system for monitoring service providers.

Manage Risk

Credit Licence holders are required to have adequate resources and procedures to manage the risks associated with their operations. Sophie Grace can assist licence holders to implement and document appropriate risk management procedures.

Credit Licence holders are required to submit to ASIC the organisation’s business activity metrics on an annual basis. From these metrics, ASIC will be able to calculate the payable fee for each organisation for the previous financial year.

Sophie Grace can assist Credit Licence holders to document their breach reporting policies and ensure breaches are identified, rectified and where required, reported to ASIC in a timely manner.

Issuers and Distributors of credit products are required to have a consumer-centric approach to designing and distributing products to consumers. Requirements include documentation to capture product governance arrangements initially and over the lifecycle of the product.

Complete your Annual Compliance Certificate

Sophie Grace can assist Credit Licence holders to complete their Annual Compliance Certificate to help ensure it is completed accurately and lodged on time.

Credit Licence holders should review their financial resources on at least a quarterly basis to ensure the business is complying with the relevant requirements of ASIC Regulatory Guide 207.

Credit Licence holders who don’t fall under an exemption in the National Consumer Credit Protection Act 2009, need to hold Professional Indemnity (“PI”) insurance. Some Credit Licence 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.

Credit Licence holders who are mortgage brokers should ensure they have adequately assessed their remuneration arrangements so these are structured in accordance with the National Credit Act and associated regulations. 


How can Sophie Grace Assist You?

Compliance obligations must be constantly satisfied, whether on a monthly, quarterly or yearly basis. With this in mind, Sophie Grace can provide your business with ongoing compliance solutions. Our services include:

Conducting a regular review of and updating compliance policies and registers.

Creating a compliance calendar to distribute the compliance workload to responsible persons and make it easier to meet obligations.

Lodging statutory forms and reports to regulators as required.

Responding to compliance questions and queries.

Conducting marketing reviews for any marketing materials to be released.

Sophie Grace provides compliance assistance to a variety of Credit Licence holders to ensure they are meeting their regulatory requirements. Compliance obligations must be constantly satisfied, whether on a monthly, quarterly or yearly basis. With this in mind, Sophie Grace can provide your business with ongoing compliance solutions in relation to the following:

  • Compliance procedures and policy documents;
  • Compliance reporting lines and management framework;
  • Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) and AUSTRAC;
  • risk management systems;
  • conflicts management systems;
  • ASIC regulations and guidance;
  • complaints – assist with compiling responses to clients or AFCA;
  • breaches and incidents, including reporting to ASIC where required; and
  • outsourcing.

Sophie Grace also has a range of compliance programs and document templates that can be purchased from our online shop. These documents can assist you in ensuring your compliance obligations are met, should you wish to take a more hands-on approach.

For further information regarding your ongoing obligations as a Credit Licence holder, please don’t hesitate to contact us.

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