ACL requirements
ASIC has recently taken over responsibility for the regulation
of consumer credit and finance broking. Accordingly, the provision
of home loans, personal loans, credit cards, consumer leases, overdrafts
and line of credit accounts etc will hereafter be regulated under
commonwealth legislation (the National Consumer Credit Protection
Act) administered by ASIC. Information about the applicable legislation,
licensing process, and general obligations is available from the
ASIC website at www.asic.gov.au/credit
Those who engage in credit activities currently must register
their intention to apply with ASIC between 1 April and 30 June
2010. Then registered participants will have six months to apply
for an Australian Credit Licence between 1 July 2010 and 31 December
2010. New entrants (or those who fail to register in the April-June
period) will need to apply for an ACL from 1 July 2010 before commencing
(or continuing) credit activities.
'Credit activity' is defined in s6 of the National Credit
Act . It includes providing credit by way of a credit contract
or consumer lease, benefiting from mortgages or guarantees relating
to a credit contract or consumer lease, and providing credit
services in relation to credit contracts and consumer leases.
What is the process for applying for
an AML?
1. Lodgment of ACL registration (if current
provider) with ASIC between 1 April and 18 June 2010 with ASIC
2. Lodgment of new ACL application with ASIC
from 1 July 2010 onwards (and prior to 31 December 2010 if registered
as a current provider)
3. Implementation of processes to ensure compliance
with the applicable licence, responsible lending, training and
general conduct obligations.
4. Implement adequate compensation arrangements.
What can Block Legal & Compliance do for ACL applicants?
1 . advise you regarding ASIC requirements and
the licensing and registration process;
2 . project manage or review your ACL Application;
3 . draft policies and procedures and/or application
proofs;
4 . liaise with ASIC to finalise your ACL application;
5 . provide assistance with compliance with ASIC
Regulatory Guides 202-207 etc (as applicable);
6 . provide training and workshops to staff and
Boards regarding the process and applicable legal/regulatory requirements;
7 . provide specialised assistance in key areas
such as drafting of legal, operational and compliance documentation;
8 . provide implementation advice and guidance
once ACL is obtained; and
9 . provide ongoing compliance oversight and
reviews, and training, once ACL has been granted.
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