You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience. This information sheet INFO answers frequently asked questions about getting an Australian credit licence credit licence under the National Consumer Credit Protection Act National Credit Act.

For more detailed guidance on these issues, see Where can I get more information? The credit licensing process is much simpler than the AFS licensing process as there are only three possible authorisations:. You should only select the authorisations that suit your business model.

For example, if you want to be or act solely as an intermediary i. See Regulatory Guide Applying for and varying a credit licence RG at RG Unless you are a streamlined applicant see Streamlining , each director and company secretary must complete the statement of personal information.

This is because ASIC needs to determine whether a credit licensee meets the minimum requirements to be licensed under the National Credit Act. It will depend on how your business is structured. If, for example, you have a single company or partnership, you should only need one credit licence but the authorisations you select upon completing your licence application would need to cover both types of credit activities.

See Regulatory Guide Applying for and varying a credit licence RG for more information about authorisations. You will get a credit licence number. If you are an Australian financial services AFS licence holder, your credit licence number will be the same as your AFS licence number.

From 1 April , whenever a licensee identifies itself in certain documents it is required to include its Australian credit licence number in the document and identify that number as being the licensee's Australian credit licence number see s52 2 of the NCCP Act.

This means that in these documents the licensee must include its licence number in the following way:. However, we think that if a licensee or a licence number is referred to in a document more than once, it will be sufficient for the full description of the licence to be used once, and the abbreviated form to then be used in that document.

The documents in which the Australian credit licence number must be included are prescribed in regulation 13 of the NCCP Regulations , as:.

The Australian credit licence number does not have to be included in other business documents, such as business cards and letterhead. However, licensees should still ensure that this documentation is not confusing or misleading to consumers. A decision was made that it would not be useful to apply the whole AFS licensing regime to credit providers and credit assistance providers.

A more tailored approach based on existing state laws was preferred, and thus a separate credit licence as opposed to an AFS licence with credit authorisations is required. ASIC has reason to believe that an applicant is likely to contravene the general conduct obligations imposed by the National Credit Act, or. See Regulatory Guide Applying for and varying a credit licence RG for detailed guidance on the licence application process.

Criminal and bankruptcy checks must be no more than 12 months old at the date of your licence application. The credit history report should be no more than three months old.

While this is not a legislative requirement, as a credit licensee, you should ensure as part of your compliance arrangements that any relevant senior persons who will perform duties in relation to credit activities continue to be fit and proper persons.

For the purposes of applying for a credit licence, the criminal history check must be a national criminal history check.

ASIC will accept national criminal history checks obtained from the following sources. For details of how to apply, see the relevant websites. In the application form, insert code number Under the legislation, some credit businesses may be eligible for a streamlined application process depending on how the previous licensing regime was applied.

For example, credit businesses will be streamlined if their business is a registered deposit-taking institution ADI and thus regulated by the Australian Prudential Regulation Authority APRA. Credit providers operating in Western Australia will be streamlined if their business is a registered ADI. Western Australian licensed brokers Class A or Class B will be streamlined but only for an authorisation limited to broking activities and only until 31 December After that date Western Australian licensed brokers Class A or Class B will only be eligible for streamlining if ASIC has granted an instrument of relief to enable a streamlined licence application to be submitted to ASIC on or after 1 January Access to streamlining is set by the legislation.

In relation to brokers, it depends on whether they are already subject to a licensing system that meets certain requirements specified in the legislation. The regime applying to licensed Class A and B brokers in WA meets the requirements. The regime applying to Class C and D brokers does not.

Class C and D brokers can apply for a credit licence. However, they will be subject to the full assessment process rather than being streamlined. Class C and D brokers who wish to apply for a credit licence or be a responsible manager of a credit licensee may rely on transitional arrangements to complete their 2 years mentoring experience by 30 June See Regulatory Guide Credit licensing: Competence and training RG To be eligible to streamline and have the advantage of having to lodge less information and pay a slightly smaller licence application fee , you need to hold a current WA Class A or Class B licence:.

The WA Department of Commerce has advised WA licensees that the Western Australian Government is making provision for a pro rata refund of state licence fees paid before the transition to the new credit regime. The process for refunds has not been finalised but details will be published on the WA Department of Commerce credit website and distributed by their e-Bulletin when they become available. Credit licensees should ensure that they have access to sufficient financial resources to be able to meet all their debts as and when they become due and payable.

As a credit licensee, you must also:. Financial requirements RG It is not possible to prescribe a level of resources for each credit licensee—it depends entirely on the nature, size and complexity of your business.

RG provides detailed guidance about how to assess what is appropriate for your business. However, it is not designed to be prescriptive but rather principles based. Whether your human resources are adequate will depend on the nature, scale and complexity of your business. We have provided some guidance about human resources in Regulatory Guide Credit licensing: General conduct obligations RG at RG In essence, you need to have enough people so you can comply with all of your obligations under the legislation, carry out monitoring and supervision, and meet your current and anticipated future operational needs.

Legislation | REIA

If you have a credit licence, you do not need to separately authorise your employees, or require them to apply for their own credit licence. If you use independent contractors, you can either require them to get a credit licence or you can authorise them to be a credit representative.

You are legally liable for their conduct under the authorisation or sub-authorisation. You need to assess the group structure and the type of services the members of the group provide. The National Credit Regulations provide some relief in that a related body corporate is exempt from the requirement to get a credit licence if they engage in credit activities on behalf of the related body corporate that holds a credit licence. See Regulatory Guide Do I need a credit licence?

Legislation

This is prohibited under the National Credit Act in order to avoid confusion as to liability for particular conduct. The following tables summarise the transitional and ongoing organisational competence and training requirements. You must comply with the requirements for qualifications by 30 June Until then, ASIC will accept various levels of relevant problem-free industry experience.

See also competence and training. Although we will not assess organisational competence as part of the credit licence application, applicants must still be able to meet the organisational competence obligations when they apply for a credit licence and on an ongoing basis as set out below. We will ask applicants to provide details of the experience and qualifications of responsible managers with the licence application. Responsible managers must have 5 years relevant problem-free experience or meet the 30 June requirements.

Responsible managers should also undertake at least 20 hours of continuing professional development each year. Responsible managers must have 2 years relevant problem-free experience. They can rely on mentoring to meet this requirement, as long as the mentoring is completed by 30 June Although we will not assess the training of credit representatives as part of the licence application process, applicants must still ensure that credit representatives meet the training requirements set out below when they apply for their credit licence and on an ongoing basis.

We will ask applicants to provide details of the training and supervision of their credit representatives with the licence application. Credit representatives include employees of a credit licensee who will be undertaking credit activities and persons authorised by the credit licensee to engage in credit activities on their behalf. Credit representatives must be adequately trained and competent to engage in the credit activities authorised by the licence.

Credit licensees are required to determine what is appropriate initial and ongoing training for credit representatives to ensure that the licensee complies with their own representative training obligation. Where industry standards exist for sectors of the credit industry or for specific products, we expect that credit licensees will ensure their representatives are trained to at least the level of the industry standard.

Credit representatives should also undertake 20 hours of continuing professional development each year. Credit representatives must be adequately trained and competent to engage in the credit activities authorised by the credit licence.

Credit licensees are required to determine what is appropriate initial and ongoing training for credit representatives to ensure the licensee complies with their own representative training obligation. Licence application fees are prescribed in the National Credit Regulations and have been set on a sliding scale to reflect the size of each business. Fees are due when you lodge your licence application. See also Information Sheet How much does a credit licence cost? For detailed information about payment options, go to www.

The discount takes into account the information ASIC already has about streamlined applicants, the reduced processing time and the reduced assessment required. The Australian Capital Territory ACT and Western Australia are the only jurisdictions where refunds are an issue. The ACT legislation includes a pro rata refund obligation on the ACT Government.

The ACT Government wrote to all ACT registrants advising of refund arrangements before their common annual renewal in March , anticipating a November commencement of the new credit regime. For information about refunds for WA licences, see Western Australian credit providers and brokers.

As a credit licensee, you will need to have arrangements in place for compensating your clients for any loss they might suffer if you breach your obligations under the National Credit Act. For most applicants, the way to comply with this obligation is to have adequate professional indemnity insurance cover.

There are exemptions from this obligation for some applicants e. See also Regulatory Guide Compensation requirements for credit licensees RG The information is useful in determining the risk profile and the business model of credit licensees. Read Regulatory Guide Do I need a credit licence? Ask a question online. Please note that this information sheet is a summary giving you basic information about a particular topic.

It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. Omission of any matter in this information sheet will not relieve a company or its officers from any penalty incurred by failing to comply with the statutory obligations of the National Credit Act. You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law.

Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you. This is Information Sheet INFO , reissued in July Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.

Skip to content ASIC Start searching Search. Applying for and managing your credit licence Apply for a credit licence Applying for a credit licence: Summary business description Applying for a credit licence: Details of professional indemnity insurance Guidance for small credit businesses Special purpose funding entities and credit Fees for credit licence and annual compliance certificate FAQs - Getting a credit licence Start or resume credit licence application.

Home For finance professionals Credit licensees Applying for and managing your credit licence FAQs - Getting a credit licence. Applying for a credit licence How do I know what authorisations to select? The credit licensing process is much simpler than the AFS licensing process as there are only three possible authorisations: Do I need to provide a statement of personal information and other supporting documentation for directors and company secretaries who are not actively involved in credit activities?

I am a credit provider and a broker. Will I need two credit licences? Credit licence numbers Do I get a credit licence number?

What do I need to do with it? This means that in these documents the licensee must include its licence number in the following way: The documents in which the Australian credit licence number must be included are prescribed in regulation 13 of the NCCP Regulations , as: Australian financial services AFS licensing Is the AFS licensing process different from credit licensing?

Do I need a separate AFS licence and credit licence? Rejection of a credit licence application When will ASIC reject a credit licence application?

ASIC must not grant a credit licence if, for example: ASIC has reason to believe that an applicant is likely to contravene the general conduct obligations imposed by the National Credit Act, or the applicant is not a fit and proper person to engage in credit activities i.

Criminal history check Who do I have to provide criminal history checks for? If you are a streamlined applicant, you will not be asked for this information. For all other applicants, you will need to provide criminal history checks: How recent do criminal history checks need to be?

What other checks do I need to provide? Do I need to do a criminal history check every year? Where can I get a criminal history check? Is a state police check sufficient? Where to get national criminal history checks Australian Federal Police www. Can lenders mortgage insurers streamline?

Yes, the National Credit Regulations permit lenders mortgage insurers to be streamlined. Western Australian credit providers and brokers Can a WA credit provider streamline? I am a WA licensed broker Class A or Class B and my WA licence is due to expire a week or two before 30 June Do I need to renew my WA licence?

Will I still be able to streamline and will the WA Department of Commerce refund the cost of my WA licence renewal? To be eligible to streamline and have the advantage of having to lodge less information and pay a slightly smaller licence application fee , you need to hold a current WA Class A or Class B licence: Financial resources What are the financial resource requirements for getting a credit licence? As a credit licensee, you must also: Will you be issuing further guidance on the level of financial resources I must maintain?

See Financial requirements Employees, contractors and aggregators What are the human resource requirements for getting a credit licence? See also general conduct obligations.

Do I need to authorise my staff or contractors to be credit representatives or require them to be licensed? We have a group structure and various members of the group will provide some credit activities. Should we apply for a credit licence or become credit representatives? I am an aggregator. How do I structure my business? Do my brokers need credit licences or can I appoint them as my credit representatives? Organisational competence and training What are the organisational competence and training requirements?

When do they start? Organisational competence for credit licensees Transitional period before 30 June By 30 June Streamlined applicants Although we will not assess organisational competence as part of the credit licence application, applicants must still be able to meet the organisational competence obligations when they apply for a credit licence and on an ongoing basis as set out below.

Credit licensees must meet the organisational competence obligations as set out below. Responsible managers — Lenders Responsible managers must have 5 years relevant problem-free experience or meet the 30 June requirements.

Responsible managers must have: Responsible managers — Credit assistance businesses Responsible managers must have 2 years relevant problem-free experience. Responsible managers — Mortgage brokers Responsible managers must have 2 years relevant problem-free experience. See mentoring guidelines from the Mortgage and Finance Association of Australia MFAA at www.

Training requirements for credit representatives Transitional period before 30 June By 30 June Streamlined applicants Although we will not assess the training of credit representatives as part of the licence application process, applicants must still ensure that credit representatives meet the training requirements set out below when they apply for their credit licence and on an ongoing basis.

Credit representatives must meet training obligations as set out below. Responsible managers — Lenders Credit representatives must be adequately trained and competent to engage in the credit activities authorised by the licence. Responsible managers — Credit assistance businesses Credit representatives must be adequately trained and competent to engage in the credit activities authorised by the credit licence.

Fees When do I have to pay the licence application fee, and how much is it? You can pay the licence application fee: Are there any discounts on the licence application fee?

Will the licence fee for my state credit licence be refunded? Compensation and insurance What level, if any, of professional indemnity insurance do I need? When do I need to get it? Outsourcing Why does the application form ask about outsourcing? Where can I get more information? Important notice Please note that this information sheet is a summary giving you basic information about a particular topic.

Companies and organisations Business names Professional registers Banned and disqualified View all registers. Pay now - business name renewals. Change addresses Update details Download your company annual statement. Renew business name Add business partner Change business address. Update details Check account balance Submit financial reports.

Update details Submit financial reports Download statements. Update details Submit statements. Update licence details Appoint an auditor Submit reports Go to ASIC Connect to update representatives. Appoint representatives Revoke representatives Update details. Register a short seller Register a submitting entity.

Update licence details Appoint an auditor Submit reports. Submit statements Submit reports Update details. Submit applications and notifications Submit enquiries Respond to notices. Information publication scheme Freedom of information Copyright Privacy Contact us Accessibility Site map. State and territory police services. Brokers accredited by CrimTrac. Responsible managers — Lenders. Responsible managers — Credit assistance businesses.