Apply for a credit licence

From 1 January 2011, if you want to engage in credit activities you must be:

• a credit licence holder, or
• otherwise permitted to engage in credit activities (e.g. an authorised representative of either of the above).

Strict penalties may apply to persons who unlawfully engage in credit activities.

Can I engage in credit activities before I'm granted a licence?

If you are setting up a new consumer credit business, you must not engage in credit activities until you have been granted a credit licence, or you are otherwise permitted to engage in credit activities (e.g. authorised as a credit representative).

Contact ASIC online or phone 1300 300 630 to discuss your options.

Step 1: Work out whether your business involves 'credit activities'

Read Regulatory Guide 203 Do I need a credit licence? (RG 203). This guide will help you decide whether you need to get a credit licence.

Step 2: Familiarise yourself with the licensing process

Read RG 204 Applying for and varying a credit licence (RG 204). This guide outlines the process of applying for and varying your licence.

Step 3: Get your supporting documents together, you have to attach them to your application

• Write a summary business description
• Do background checks on your 'fit and proper' people. For each of them you must attach a:
  • national criminal history check (or overseas criminal history check for overseas people)
  • bankruptcy check.

  The criminal history check and bankruptcy check must not be more than 12 months old.

  Your application will be rejected if you don't attach these supporting documents. See RG 204 for details.

  Step 4: Get information about your responsible managers

  You must include their qualifications and relevant work experience on the application.

  Step 5: Think about who you will be authorising as credit representatives

  Step 6: Make sure you are a member of the Australian Financial Complaints Authority (AFCA)

  When you apply for a credit licence, you must be a member of AFCA, the external dispute resolution scheme for financial complaints in Australia.

  Step 7: Make sure the details we already have about you are up-to-date

  Check our registers (e.g company, Australian financial services licence, credit registration)

  Step 8: Work out the licence fee you will have to pay

  Step 9: Understand your professional indemnity insurance obligations

  Before ASIC grants your licence, you must demonstrate that you have adequate professional indemnity insurance in place.

  We will ask you to complete this questionnaire about your professional indemnity insurance, and to provide us with a certificate of currency.

  Tip – if you are unsure about how to complete this questionnaire, we suggest that you consult your insurance broker.

  Step 10: Understand your other obligations as a licensee

  Are you ready? You must be able to declare that all of the information in your application is complete and accurate.

  Ready to apply?

  Please ensure that the online application and declarations are submitted by:

  • for a natural person applicant, the person applying for the licence
  • for a corporate applicant, a director of the corporation applying for the licence, or
  • an authorised agent of the applicant.

  What happens next?

  When we receive your application an ASIC staff member will contact you.

  To ensure that we can contact you efficiently, please provide the direct telephone number of the contact person for the licence application.

  The assessment of your application will include:

  • your ability to comply with the general conduct obligations under the National Credit Act, which aim to ensure that you operate your credit business properly, and
  • being a fit and proper person to engage in credit activities. The fit and proper person assessment is made for:
    • natural person applicants,
    • directors, company secretaries and senior managers of corporations, who will perform duties in relation to the credit activities to be authorised by the credit licence
    • responsible managers.

    We aim to decide whether to grant a credit licence within 150 days. Applications beyond the 150-day target are generally complex ones, requiring, for example, additional policy work or legal review.

    Signing documents

    Some documents that you must provide require a signature. These are to be signed by:

    • for a natural person applicant, the person applying for the licence
    • for a corporate applicant, a director of the corporation applying for the licence, or
    • an authorised agent of the applicant.