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January 21, 2011

Credit Licence Annual Compliance Certificate

Credit licensees are required to lodge with ASIC a compliance certificate no later than 45 days after the licensee's licensing anniversary in each year: section 53 National Credit Act.

ASIC has issued Information Sheet IS 135 Annual Compliance Certificates for Credit Licensees and Information Sheet IS 138 Credit Annual Compliance Certificate: Statement of Personal Information Template.

ASIC has also issued Australian credit licence Annual compliance certificate questions. It has not yet published the form of the annual compliance certificate required to be lodged. ASIC says these questions are taken from the current draft of the Australian credit licence annual compliance certificate which may change before release.

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Posted 21st January 2011 by David Jacobson in licensing

January 20, 2011

ASIC issues report on Credit Act relief decisions

ASIC has released a report Overview of decisions on relief applications (June to September 2010) (REP 226 )

Report 226 summarises situations where ASIC has exercised, or refused to exercise, its exemption and modification powers under the Corporations Act, the licensing and responsible lending provisions of the National Credit Act and the registration provisions of Schedule 2 of the Transitional Act. Decisions by ASIC to refuse to exercise its powers are described on an anonymous basis.

In respect of the Credit Act ASIC's report includes the following decisions:

Conditional relief for loans to clergy
ASIC granted conditional relief from the requirement to hold a credit licence for the provision of loans to clergy. Conditional relief was granted to bring the provision of loans to clergy into line with the employee loan exemption in s6(11) of the National Credit Code. Conditions were imposed on the relief to retain some key protections for these loans, including the hardship provisions in the National Credit Code. Relief was also granted from the responsible lending obligations.

Insurance brokers
ASIC refused to grant relief from the requirement to hold a credit licence to insurance brokers who provided credit assistance for contracts to finance insurance premiums (premium funding).

ADI branches
ASIC refused to grant permanent relief to certain credit representatives of authorised deposit-taking institutions (ADIs) (i.e. franchisee and agent companies that operate branches of those ADIs and their employees) from the requirement to have separate external dispute resolution (EDR) scheme membership. However, ASIC granted interim relief for a period of 12 months to allow the affected ADIs and credit representatives sufficient time to put in place administrative arrangements and systems for compliance.

Loans processor
ASIC refused to grant relief from the requirement to hold a credit licence to a loan processor, who operates externally to, and independent of, credit licensees or authorised representatives of a credit licensee.

Hardship relief
ASIC refused to grant interim relief from the requirement to give the debtor a written response under s72(3) of the National Credit Code outlining the reasons for not agreeing to changes to the terms of a credit contract requested in a hardship application. Interim relief was sought to allow the applicant time to make system changes for the electronic generation of these responses.

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Posted 20th January 2011 by David Jacobson in legislation, responsible lending

January 13, 2011

ASIC credit licensing update

ASIC has reported that it has issued around 2900 credit licences with a further 3900 applications still being processed.

If you are a credit registered person who applied for a credit licence before 31 December 2010, you can continue to engage in credit activities until ASIC makes a decision on your licence application (provided the licence issues by 30 June 2011).

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Posted 13th January 2011 by David Jacobson in licensing