The Australian Securities and Investments Commission (ASIC) has today released its second guidance package on the new credit licensing laws, which are to come into force in July 2010.
The package includes guidelines on applying for a credit licence, general conduct obligations, and training and financial requirements, as well as separate guidance for small credit businesses.
In summary, an application for a credit licence and an application to vary a credit licence will need to be made electronically using ASIC’s online licensing system, according to Regulatory Guide (RG) 204.
RG 205 provides guidance for credit licence applicants and credit licensees about ASIC’s expectations for meeting the general conduct obligations in s47(1) of the National Credit Act.
RG 206 allows for a transitional period giving participants until 30 June 2014 to obtain the necessary qualifications. As a general rule, ASIC expects responsible managers to have at least two years relevant experience and a relevant qualification at the Certificate IV level or above.
RG 207 recognises what a licensee needs to do to comply with the financial resource requirements, including ensuring that they have access to sufficient financial resources to be able to meet all of their debts, plan and monitor cash flows and keep written records.
RG 208 provides guidance on fees for relief applications in some circumstances.
INFO 97 contains general information to help people who run small credit businesses, including providing some suggestions and examples to help people who run small businesses think about how they will meet their obligations as licensees.
The regulatory guides can be downloaded at www.asic.gov.au.
The release of this package is part of ASIC’s effort to provide as much upfront guidance as is possible before the commencement of the National Consumer Credit regime in July 2010.
It follows the release of guidance on the registration process which begins on 1 April 2010.
“We will continue to work with people likely to be affected by the new requirements as part of our commitment to achieving a smooth transition for industry”, ASIC commissioner Dr Boxall said.
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