What is a Responsible Manager?

A Responsible Manager (“RM“) is a person nominated within a business who has the knowledge and skills required by ASIC’s Regulatory Guide 206 (“RG 206“) to manage a licensee’s credit business.

ASIC uses a RM’s experience and qualifications to assess and demonstrate the organisational competence of your business. RMs are required to pass a fit and proper person test. All RMs are required to be directly involved in:

• Overseeing the provision of credit activities; and 
• any significant day-to-day decisions in relation to the credit activities offered by the business.

Finding a suitable RM to support your Credit Licence application is one of the most important steps in the application process. Each RM nominated as part of your Credit Licence application needs to be able to demonstrate organisational competence for each of the credit authorisations on your application i.e Credit providing, Credit Assistance Providing and Debt Management services.

Experience and Qualifications

ASIC requires RMs appointed on a Credit Licence to have:

• a minimum of 2 years’ problem free experience engaging in credit activities under another Credit Licence or as a credit representative; and
• a relevant credit industry qualification.

The qualifications required will depend on the type of licence being applied for:

Additional Requirements

All RMs are required to have current and clear Police and Bankruptcy checks (dated within the last 12 months) and, should not be associated with more than one other Credit Licence either as a RM, Director or Shareholder.

Australian Credit Licence holders should ensure any arrangements with RMs are appropriately documented either in the form of an employment contract or a Responsible Manager Agreement.

Please contact us for further information on how Sophie Grace can assist you in finding and engaging the right Responsible Manager for your business.