CUBS’s now have Australian Financial Service Licences (for deposit and payment products and financial advice and insurance) and Australian Credit Licences (for consumer credit activities). Both are supervised by ASIC.

But there is still confusion as to what you do if you discover a potential or actual breach.

The priority in all cases is identifying the problem and fixing it. We can assist with that process.

Under your AFS Licence you must notify ASIC within 10 business days after becoming aware of a significant breach or a likely breach, unless your auditor has already reported it to APRA: section 912D Corporations Act.

There is no similar obligation to report to ASIC if there is a breach of your ACL but the penalty provisions of the National Credit Code do need to be considered.

In both cases your internal compliance reporting obligations must be followed.

If the breach is material and you have listed securities also notify your stock exchange.