Every credit business in Australia has a number of on-going legislative, regulatory and contractual obligations that they must continue to meet to ensure that they can operate their businesses. In addition to these obligations, there are policies and procedures and risk management frameworks that they must meet to ensure that they have sound business practices.
Failure to have adequate compliance with these broad obligations, can have serious financial, legal and reputational consequences.
Thus, it is unsurprising that ‘compliance’ for a lot of businesses is a daunting task. Businesses feel apprehensive as soon as they hear about compliance, risk management, or regulatory change.
How Can We Help?
We have almost a decade’s worth of experience in banking and finance compliance and risk management.
We regularly assist mortgage brokers in:
- Applying for their Australian Credit License (‘ACL’)
- Setting up their compliance and risk management framework
- Advising them on their compliance obligations, including disclosure obligations and responsible lending obligations
- On-going and once-off compliance monitoring
- Authorising credit representatives
- Ad-hoc advisory services
Fixed Fee Service For Applying For An ACL
We have almost a decade’s worth of experience in banking and finance compliance and risk management.
For our clients wishing to apply for an ACL, as a credit broker, we estimate and fix our professional legal costs, hence avoiding any misunderstandings about our legal costs.
Do You Need To Obtain Your ACL?
The National Consumer Credit Protection Act (‘NCCP’) outlines the need for applying for an ACL.
You need to obtain an ACL if you wish to engage in credit activities. There are three different types of authorisations:
- Engage in credit activities as a credit provider
- Engage in credit activities other than as a credit provider or lessor (e.g. as a credit representative or broker)
- Engage in all credit activities
We can also clarify whether you need to obtain an ACL.
How Do You Apply For An ACL?
When applying for an ACL, there are a number of documents that you need to submit. These are outlined in the NCCP and ASIC’s Regulatory Guide 204. Broadly, you will need to:
- Write a summary business description
- Do a background checks on your ‘fit and proper’ people. A background check needs to be carried out for each of them and you must attach a:
- national criminal history check (or overseas criminal history check for overseas people)
- bankruptcy check.
- Include qualifications and relevant work experience for your responsible managers
- Outline your compliance processes
- Be a member of an External Dispute Resolution Scheme, either:
- Financial Ombudsman Service (www.fos.org.au or phone 1300 56 55 62), or
- Credit and Investments Ombudsman(www.cio.org.au or phone (02) 9273 8455).
- Have adequate professional indemnity insurance
- Pay the relevant license fee.