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Credit licensees

Apply for a credit licence

Key points:

  • You will generally need a credit licence before you start a credit business.
  • Before you apply, you need to develop systems for compliance. You will also need some documentation to support your application.
  • You can apply for a licence online.

Before you apply

There is a lot of information you will need to provide when you apply for a credit licence. You should prepare that information before you start your application.

You also need to develop arrangements and systems so you can comply with your obligations after we grant you a licence.

This information is a summary of what you need to do before you apply. For more details, see:

Regulatory Guide 204 Applying for and varying a credit licence (RG 204)

Not everyone who provides credit to consumers or consumer leases needs a licence. Check if you need a credit licence before you start applying.

Prepare key information about your business

Before you apply, you need to:

  • understand and be able to explain your business structure
  • prepare your details as the applicant, such as the entity type and contact details
  • select the authorisations that are appropriate for the type of credit activities you want to engage in
  • know how many representatives you plan to have
  • prepare a description of your proposed business activities – you can choose to use our template for your summary business description (DOC 252 KB).

You also need to calculate the total amount of credit advanced, assigned or referred, and rent payable. As you may be operating a new business, this amount may be zero.

Identify and get information about your fit and proper people

You need to identify the people who will manage and control your credit business (fit and proper people). This usually includes directors, partners, trustees and senior managers. It can also include anyone who controls the applicant.

You must use our template for information on fit and proper people (DOC 101 KB).

For each person, you must also prepare a:

  • statement of personal information
  • national criminal history check (or overseas criminal history check for people who have lived overseas in the last ten years only)
  • bankruptcy check (for people who have lived overseas in the last ten years only).

You must use our template for the statement of personal information (DOC 87 KB).

The criminal history and bankruptcy checks must be less than 12 months old. They can take a while to complete. You should ask for them at least 6 weeks before you apply for your licence.

See what information we consider when assessing fit and proper people:

Information Sheet 244 Credit licence applications: Providing information for fit and proper people (INFO 244)

Confirm statements of past conduct

Before you apply, you need to know if certain statements about your past conduct and the past conduct of certain people connected to your application (listed people) are true.

The listed people include you and your officers, partners or trustees – depending on your business type.

See a list of the statements in Section F of RG 204.

You may need to do background checks to confirm these statements.

See where you can do background checks in Table 6 of RG 204.

If you cannot confirm that a statement is true, you must explain why in a separate document.

Identify and get information about your responsible managers

You also need to identify your responsible managers. These are the people you nominate and rely on to show competency in the credit activities you engage in. You need:

  • their fit and proper person documents explained above
  • copies of their educational qualifications
  • details of their work experience
  • an explanation of how they meet the competency requirements.

Read more about competency requirements for responsible managers:

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Develop adequate arrangements and systems for compliance

Before you apply, you need ‘arrangements and systems’ that help you run your business properly. These include:

  • systems to monitor compliance and manage conflicts
  • arrangements to supervise and train representatives
  • adequate financial, human and IT resources
  • a dispute resolution system – including AFCA membership, which you must have before we can issue a licence
  • adequate risk management systems
  • arrangements for compensating your clients.

You must have most of these in place before you apply for your licence.

See a list of these arrangements and systems, and where to find further guidance, in Table 3 of RG 204.

Become a member of the Australian Financial Complaints Authority

Your dispute resolution system must include membership of the Australian Financial Complaints Authority (AFCA).

If you are already a member of AFCA as an authorised credit representative, you need to apply for AFCA membership as a credit licensee before we can issue a licence.

You can apply for a licence if you are not a member of AFCA. But we will only issue you a licence when you are a member.

See the AFCA website for how to apply for membership.

Organise your compensation arrangements

To comply with the compensation obligation, you will need to organise either:

  • professional indemnity (PI) insurance, or
  • alternative compensation arrangements.

Most applicants take out PI insurance.

We recommend you start organising your compensation arrangements before you apply for a licence. This is because it can take several weeks to finalise PI insurance, or for us to assess that your alternative arrangements are adequate.

For more information, see RG 204.

Update your details with ASIC

If you are already registered with ASIC (for example, as a company director or AFS licensee), your application will be pre-filled with your current details.

You cannot change your details during the application process. Check they are up to date before you start:

Steps to apply for your licence

After you have prepared the necessary information and arrangements for your licence, you can start the application.

Your application is not complete when you submit it online. There are more steps you have to take before we will assess your application.

Decide who will apply

The application must be submitted by:

  • if the applicant is a natural person – that person
  • if the applicant is a corporation – a director of that corporation, or
  • a lodging agent on behalf of the applicant.

If a lodging agent is applying on your behalf, you need to authorise them to do so.

Start your application

When you are ready, you can apply online.

Start your application

You can pause your application and resume at any time. You can also check the progress of your application after you submit it. To do this, you will need your:

  • application reference number
  • username
  • password.

Resume or check the progress of your application

Review and submit your application

Before you select the ‘Submit’ button, review your application. Check that it is correct and complete. You cannot change or withdraw your application.

Save a PDF copy of your application after you have submitted it.

Pay the fee

There is a fee to apply for a credit licence.

See the ‘Specified fees’ in Schedule 1 to the Schedules of credit fees.

After you submit your application, your credit licence fee and payment instructions will show on the screen. You can save a copy as a PDF.

You have to pay the fee before we will assess your application. If you pay by cheque, let us know by emailing licensing.credit@asic.gov.au.

Provide your core proof documents

Shortly after you submit your application online, we will send you instructions to securely submit your core proof documents. You must provide these documents within 2 days of receiving these instructions.

Your core proof documents include:

  • a signed copy of the completed application form
  • supporting documents about each of your fit and proper people and responsible managers
  • copies of qualification certificates for your responsible managers
  • your summary business description
  • a document explaining why you cannot confirm the statements of past conduct, if needed.

After you apply

An ASIC staff member will contact you after we receive your application, core proof documents and payment. They will let you know if we need more information.

We will not start assessing your application until you send your core proof documents and pay the fee.

If we grant you a licence, we will email you a copy of your licence, including:

  • your licence number
  • the authorisations and other conditions on your licence.

Once you have your licence, you can engage in credit activities. You will need to do this within 6 months of getting your licence.

You can also sign up for credit licence portal access. You will need your licence number, and the username and password you used when you applied.

You will also appear on the credit licensees register. Your information is available to the public through the ASIC professional registers search.

Further guidance

Information Sheet 101 Applying for a credit licence: Summary business description (INFO 113)

Information Sheet 132 Applying for a credit licence: Details of professional indemnity insurance (INFO 132)

Information Sheet 97 Guidance for small credit businesses (INFO 97)

Information Sheet 244 Credit licence applications: Providing information for fit and proper people (INFO 244)

Information Sheet 108 Fees for Australian credit licences and annual compliance certificates (INFO 108)

Information Sheet 103 FAQs: Getting a credit licence (INFO 103)

Information Sheet 254 Debt management services: Applying for a credit licence or variation (INFO 254)