What is a Responsible Manager?
A Responsible Manager (“RM“) is a nominated person within a business who has the knowledge and skills required by ASIC as per Regulatory Guide 206 (“RG 206“).
ASIC uses an RM’s experience to assess and demonstrate your business’s organisational competence. ASIC requires RMs to be a fit and proper person as per RG 206 (this was previously a ‘of good fame and character’ requirement). They are required to be directly involved in overseeing the provision of credit activities and any significant day-to-day decisions that affect your business.
Finding a suitable RM to support your ACL application is one of the most important steps in the application process. The RM nominated as part of your ACL application needs to cover 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:
- minimum 2 years’ problem free experience providing credit services (broking or lending) under another ACL or as a credit representative; and
- a relevant credit industry qualification.
Credit Providing RMs are required to have at least a Certificate IV in Credit Management or Financial Services or general higher-level qualification in a relevant discipline including Commerce, Economics, Business or Accounting.
Credit Assistance Providing RMs are required to have at least a Certificate IV level credit qualification. If you intend on providing third-party home loan credit assistance, the RM is required to hold a Certificate IV in Finance and Mortgage Broking.
Debt Management RMs are required to explain how their qualifications are relevant to debt management services and their ability to meet the compliance obligations under a credit licence.
All RMs are required to have clear Police and Bankruptcy checks (dated within the last 12 months) and should not be associated with more than one other ACL either as RM, Director or Shareholder.
ACL holders should ensure the 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.