One of our most popular client services is the provision of ongoing retained compliance support to ACL holders. This involves regular file audits, monitoring of credit rep actions, provision of a NCCP compliance help desk facility and the co-ordination of all ASIC-related reporting and associated maintenance of our client’s ASIC portal.
Our retained service clients continue to provide positive feedback in that we take away the stress of compliance and ASIC-related administration; allowing them to concentrate more on writing loans and growing their business. If this appeals to you, we’d love to simply have a chat and explain how our support services work and in turn, assist you to deliver Better Outcomes for your clientele.
Based on our experience, most Finance Brokers are unaware of their reporting obligations to ASIC and therefore we thought it helpful to provide the following summary in this month’s publication.
The following obligations are monitored by ASIC. We have been involved in multiple examples where ACL holders have accidentally missed telling ASIC of such changes and in turn, they have been subjected to the possibility of losing their Credit Licence. ASIC has the view that if an ACL holder can’t take care of these simple tasks, then what else aren’t they doing!
Don’t risk your business and your livelihood by overlooking the following key requirements:
Obligation 1: Change in Details
Requirement: Notify ASIC of a change in any of the following within 10 business days:
- Name (including the principal business name, if any);
- Principal business address;
- Approved external dispute resolution scheme.
Obligation 2: New authorised Credit Representative of revocation of existing Credit Rep
Requirement: Notify ASIC of new authorisation within 15 business days (10 days for revocation).
Obligation 3: Change in Credit Representative details
Requirement: Notify ASIC of a change in any of the following within 10 business days:
- Name (including the principal business name, if any);
- Principal business address;
- Details of the credit representative’s authorisation and date of authorisation;
- Name and credit number of each licensee for which the credit representative is a credit representative; and
- Approved external dispute resolution scheme.
Obligation 4: Change in control
Requirement: Notify ASIC of the particulars of the change of control within 10 business days.
Obligation 5: Material adverse change in financial position
Requirement: Notify ASIC of any event that may make a material adverse change to your financial position by comparison with the position at the time of application for the credit licence or as described in any documents lodged with ASIC at any time (including the annual Compliance Certificate). Within 3 business days after the change.
Obligation 6: Key Person
Requirement: Notify ASIC that the person ceased to be an officer of the business, or to perform duties in relation to the credit business and the date on which this occurred. Within 5 business days.
If you’d like some help or clarification on any issues above, don’t hesitate to get in contact with us.
