The basic steps you need to follow when obtaining an Australian Credit Licence are:
1. Choose your Responsible Managers
You must ensure that the Responsible Managers (RMs) nominated in your application have the appropriate skills and experience to demonstrate organisational competence in each of the authorisations that your business is seeking.
Generally, ASIC requires RMs to have:
- a minimum of 2 years’ problem free experience engaging in credit activities under another Australian 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.
Read more about the Responsible Manager requirements.
Sophie Grace can assist with assessing whether your RMs meet ASIC’s stringent requirements. Alternatively, we can put you in touch with candidates who will satisfy the requirements for the business you are seeking to operate.
You can also do our quiz below to see whether your RM is suitable.
2. Draft your Documents for ASIC
The documents submitted to ASIC for your Australian Credit Licence application are known as ‘Proof Documents’. Sophie Grace will work closely with you to prepare the following proof documentation to meet the requirements of your credit licence application:
- Business Description;
- People proofs for each nominated Responsible Manager – including police check, bankruptcy check and qualifications;
- Background checks for all fit and proper people, including directors, secretaries, senior managers, controlling shareholders and officeholders of the controller (where the controller is a body corporate);
- Fit and Proper People Proof.
3. Additional Information
After the submission of an application, ASIC often requires further information to accompany the application. Sophie Grace will prepare this information and/or documentation for you and liaise with ASIC on your behalf.
How does ASIC assess an Australian Credit Licence application?
- Initial Lodgement: an ASIC analyst is appointed and an initial review of your application documents is completed to ensure that all required documentation has been received by ASIC.
- Requisitions: The analyst then commences their assessment and makes requisitions for further information or documentation.
- Draft Australian Credit Licence Provided: Where ASIC is minded to grant an Australian Credit Licence, you will be provided with a draft licence, along with any final requisitions. It’s important you review the draft licence carefully, as it reflects the final Australian Credit Licence ASIC intends on granting.
- Grant of Final Australian Credit Licence: Once all final requisitions are responded to, ASIC will grant the final licence.
4. Ongoing Procedural Documentation and what’s next
The ongoing compliance obligations of your new or varied Australian Credit Licence will require procedural documentation. Refer to our page on Credit Licence Procedural Documentation for more information.
There are four ASIC portals that you will need to access:
- Credit Licensee Portal: All Licensees must register for online access via the Credit Licensee portal. This portal allows you to make changes in relation to your licence, including changes to your address, Responsible Managers, authorisations and credit representatives. You should ensure that your contact details are up to date so all correspondence from ASIC is received by the appropriate person.
- ASIC Connect: The ASIC Connect portal allows you to add a Business Name/ABN via the ASIC Connect portal.
- ASIC Regulatory Portal: A range of regulatory services can be accessed through the ASIC Regulatory Portal. Lodgements in relation to breaches and ASIC industry funding metrics are completed via this portal.
- Companies Portal: this portal allows officeholders, or their agents, to make changes to the company details, including changes to the address, officeholders, shareholders and share structure.
Enrol with AUSTRAC
Any entity that provides designated services must be enrolled with AUSTRAC within 28 days of commencing operation. Enrolment forms can be completed via AUSTRAC Online.
Appoint Credit Representatives
Credit licensees are required to notify ASIC of the appointment of any Credit Representative within 15 business days of the appointment via the ASIC Connect portal. Any changes to Credit Representative details are also required to be notified to ASIC within 15 business days.
Establish Compliance Procedures
Commence operations – Provide services within 6 months
Credit licensees must commence their credit services business within 6 months of receiving their final Australian Credit Licence. ASIC has the power to cancel an Australian Credit Licence if the licensee fails to commence its business within this timeframe. Credit licensees can request an extension of time from ASIC if there are genuine reasons to do so.
If you would like to obtain further information or assistance, please contact Sophie Grace directly.