Australian Credit Licence

Every mortgage professional worth their salt will tell you, “In our industry the only constant – is change!”

The last couple of years have certainly built character, with the ups and downs of financial markets, anticipation of government reviews and our profession in the firing line following the actions of an unprofessional few.

These trying times call for everybody in the industry to step up and be counted. It’s time to show not only our peers, but the general public and government that we are in fact professionals that do care about our client’s best interests. If this means creating new laws that make it safer for consumers by creating a floor of protection, so be it!

The new regime of having either a representative status or an Australian Credit Licence is designed to overhaul the system providing better education for advisers in the hope that the standards of advice will improve. Whilst another layer of regulation and bureaucracy is hardly an efficient solution, the improvements it aims to bring to the industry should push out the fly-by-nighters who do anything to sell a product, including give bad and unqualified advice.

All people involved in providing credit in Australia must have registered with ASIC prior to 30 June 2010 or they will be unable to transact acfter the 1st July 2010. Between 1st July 2010 and the 1st January 2011, they must either apply for an Australian Credit Licence (ACL) or be an authorised representative of an ACL.

As of 1st January 2011, any business or individual involved in credit must either hold and Australian Credit Licence (ACL), or be appointed as a credit representative under an ACL.

Walker and Miller provide compliance and licencing assistance. To see the packages and for assistance Click Here.

In the past few months we have seen a rush to complete our Certificate IV programs, with ASIC designating that this will be the minimum educational standard required of all providers of credit and credit related services. We have also had many of our existing clients approach us to help them to obtain the Supporting documents required for an Australian Credit Licence:

1. Australian Federal Police ASIC Criminal History Certificate
2. National Personal Insolvency Index Bankruptcy Extract
3. VEDA Advantage Consumer & Commercial Credit History Check

Please click here to download the forms for these checks.

I would encourage you all to take steps now to ensure you are ready for ASIC regulation and stay tuned for more developments over the next few months.