Varying or cancelling your credit licence
If your circumstances change you may need to vary or cancel your credit licence.
You may need to vary the authorisations or other conditions of your credit licence if:
- the nature of your business changes (for example, you want to engage in credit activities that are not authorised under your existing licence), or
- you want to change one of the conditions of your licence (for example, if you have a ‘key person’ condition on your licence and that person leaves your business).
Changing or removing a key person condition
If a responsible manager who is named as a key person on the credit licence certificate has left the licensee, you must in the first instance notify ASIC, within 5 business days, of the actions you will take to replace that key person. This notification is to be made by letter addressed to:
GPO Box 9827
MELBOURNE VIC 3001
Ensure that you:
(i) any key person who has left, or is leaving, your business; and
(ii) any responsible manager/s that you wish to rely on instead;
(b) provide an explanation of why there needs to be a change to your key people; and
(c) provide reasons why ASIC should allow the change to your key people.
This should include your explanation of whether each responsible manager that you wish to rely on has sufficient knowledge and skills to replace the key person, and is a fit and proper person to engage in the credit activities that are authorised under your licence.
You also need to complete form CL03 Vary authorisations or conditions of an Australian credit licence via the credit portal to apply to vary your licence to change or remove the key person condition that ASIC has imposed, providing full reasons for the variation to the key person condition, as outlined above.
You should not submit the application to vary your licence until all required supporting documents are available. When you have finalised your CLO3, you must attach all your supporting documents to the application via the portal.
When you commence entering the CL03 via the portal, it will list the fit and proper people (about whom we already hold information that is relevant).
You can either:
(a) rely on the information that you previously provided to us and that is pre-filled in your variation application, if this information is current; or
(b) click on ‘Edit’ to update the information.
For each new fit and proper person:
(a) complete the Statement of Personal Information;
(b) provide any additional information to explain matters identified in the Statement of Personal Information;
(c) provide copies of background checks comprising
(i) National criminal history check (not more than 12 months old), or overseas criminal history check for overseas people,
(ii) bankruptcy check (not more than 12 months old); and
(d) if the person is identified as a responsible manager, complete details of their previous credit related employment and relevant educational qualifications. In addition please provide copies of these qualifications.
You must also submit a summary business description which provides an overview of your business and describes the credit activities that you undertake.
We will then assess whether to grant your application. We aim to complete this assessment within 60 days.
We can only accept complete applications. If your application is incomplete and we reject it, you will need to re-submit another application after rectifying any deficiencies.
You may need to cancel your licence if:
- you no longer engage in credit activities, or
- you intend to become a credit representative and the credit activities you will engage in are the same as those covered by your credit licence.