Applying for a credit licence: Summary business description
This information sheet (INFO 113) contains a template you can use on an optional basis for preparing the summary business description required to be attached to your online Australian credit licence application.
It illustrates the type of information you need to give us including relevant examples. The examples are not exhaustive and you should consider your own particular circumstances when determining how the law applies to you. Requirements for the summary business description are outlined in Regulatory Guide 204 Applying for and varying a credit licence (RG 204) at RG 204.321.
Your summary business description may include references to, or descriptions of, other written procedures. These documents are not required to be provided to ASIC with your summary business description, although we may request copies when assessing your licence application.
Please note that this information sheet is a summary of this topic and, as such, may include generalizations and not cover the whole of the relevant law regarding this topic.
Summary business description
Summary business description for [insert name]
Credit activities I will engage in [Provide an overview of your main business activities and operation (e.g. mortgage broker, aggregator, finance company).]
The types of credit products to which our activities will relate to are [What products does your credit service relate to? What credit activities are you a credit provider for? Describe the products (e.g. home loans, low doc loans, unsecured loans, leases, credit cards).]
Our process for assessing credit applications is [What documents and/or application processes are used to determine whether a credit facility is suitable for an applicant and meets responsible lending obligations. For example, are income documents asked for? Do you verify applicant’s assets and liabilities? Do you do an employment and credit check?]
Business is conducted by [How will you conduct/sell your business on a day-to-day basis? For example, will you rely on applicants to approach your business at branch offices or will you visit applicants at their own premises?]
Our typical client base is [Do you have a typical client base that you target?]
Income from the credit activities is expected to be from [How are you paid for services rendered? For example, do you charge fees for service or do you receive commission-based fees (upfront/trail) or referral fees?]
The operation of the business is conducted from [If you have multiple sites/offices, how do you ensure that all sites/offices are operating consistently and that supervision is adequate? Do all sites/offices comply with regulatory requirements and how? For example, provide addresses, number of offices and locations (including overseas) and details about how you supervise representatives if they are located remotely.]
The functions we intend to outsource are [Do you intend to outsource any operational or administrative functions? If so, how do you determine which functions will be outsourced and which service provider is most suitable to you? Do you have any policies about outsourcing in place including processes for monitoring outsource providers? Provide examples of outsourced functions (e.g. IT, administration, loan settlements, document registration, title searches).]
[Provide any additional information not covered above that you think is relevant to your business description (e.g. company/business structure, number of years of operation).]
This is Information Sheet 113 (INFO 113), issued in June 2010. Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.