ACL holder obligations
Your licensee (the ACL holder) will undertake your background checks and provide written consent to you to confirm that you have been accepted as an ACR.
It’s the ACL holder that needs to notify ASIC of the appointment including:
The date of authorisation.
Your Credit Representative number.
Your name, date and place of birth, or body corporate name and ABN.
Your principal business address (and an alternative address if applicable)
Details of your EDR scheme membership.
An ACL holder has the following ongoing obligations (unless an exemption applies):
- ensure that credit activities are engaged in efficiently, honestly and fairly manner;
- conflict of interest arrangements;
- comply with any licensing conditions;
- comply with credit legislation;
- maintain competence to engage in credit activities;
- ensure representatives are adequately trained;
- internal dispute resolution procedures;
- member of an approved EDR scheme;
- compensation arrangements (including professional indemnity insurance) for violations of its obligations;
- adequate and documented compliance arrangements and systems;
- sufficient resources and proper risk management systems;
- cite its ACL number on documents;
- regular reporting to ASIC;
- breach reporting to ASIC within ten business days; and
- financial record-keeping.
