Australian Regulator Releases Updated Guidance for Making a Credit Licence Application

Australian Securities and Investments Commission (ASIC) has updated its guidance for people wanting to apply for a credit licence. 

Regulatory Guide 204 Applying for and varying a credit licence (RG 204) was first issued in December 2009 for guidance to prospective credit licensees on the implementation of the National Consumer Credit Protection Act (National Credit Act). 

RG 204 has been updated to reflect changes made to the credit licence application form because of:

• the end of the transition period between credit registration and credit licensing
• some minor legislative changes that have been made since the previous update to RG 204 in June 2010
• changes to ASIC’s policy on organisational competence and representative training for credit licensees that provide home loans, as set out in Regulatory Guide 206 Credit licensing: Competence and training (RG 206) (refer: 11-316AD), and
• changes to ASIC’s assessment process for credit licence applications to require provision of bankruptcy checks for fit and proper people of the applicant instead of a credit history report.

These amendments are part of ASIC’s continuing focus on maintaining an efficient registration and licensing system, particularly for small business.