What to do if you missed the deadline for credit registration


Excerpt from ASIC website:

 

This information sheet explains what to do if you have missed the deadline for registration under the National Consumer Credit Protection Act 2009 (National Credit Act).

Does the National Credit Act apply to your business?
The National Credit Act generally applies to anyone who is conducting consumer credit activities, whether providing credit or helping people to obtain credit (e.g. as a broker). If you’re not sure whether the National Credit Act applies to your business, read Regulatory Guide 203 Do I need a credit licence? (RG 203) and/or seek your own legal advice.

If the National Credit Act applies to your business, you will need to be licensed by ASIC, or authorised as a representative of someone who is licensed. Existing credit businesses (i.e. businesses operating before 1 July 2010) were required to register with ASIC by 30 June 2010, and apply for a credit licence by 31 December 2010.

What should you do if you have missed the deadline?
If you run an existing credit business and have missed the deadline for credit registration, you need to stop engaging in credit activities. You have two options: ·         you can apply to ASIC for a licence, or ·         you can apply to ASIC for an extension of the period to submit your registration application (this is potentially a quicker process than licensing, if it is available to you, although you will still need to apply for a licence by 31 December 2010).
We will consider extending the registration period to allow late registration on a case-by-case basis. Once you are licensed or registered, you can continue your credit business.

How to apply for late registration
If you would like ASIC to consider extending the registration period to allow late registration, you need to make an application to ASIC. You can do this by writing a letter to ASIC setting out the following information: ·         an explanation for the delay in applying for registration (we need to consider whether the explanation is reasonable in the circumstances). ·         the length of the delay in applying for registration ·         the type and size of your credit business (e.g. whether you are a credit provider or credit intermediary/broker and how much credit you have lent or helped people to obtain in the last year) ·         the cost to your credit business of suspending operations while a licence application is prepared and assessed ·         the cost to your credit business of preparing a licence application (see Regulatory Guide 204 Applying for and varying a credit licence (RG 204)) ·         the likelihood and extent of any consumer detriment resulting from the proposed extension of the registration period ·         the likelihood and extent of any detriment to consumers resulting from the suspension of your credit business while a licence application is prepared and assessed ·         whether you are a member of an external dispute resolution (EDR) scheme (you must be a member of an EDR scheme to be registered).
You should also look at Regulatory Guide 51 Applications for relief (RG 51) for more guidance about making this application. The fee for ASIC considering whether or not to extend the period for you to submit your registration application late is $100.

You also need to complete a registration application. For more information about the questions you will be asked in the registration form, and the obligations you will have as a registered person, see Regulatory Guide 202 Credit registration and transition (RG 202). ASIC's online registration system closed on 30 June 2010. The fee for lodging a paper registration application for manual processing is $25.

You can send the completed documents together with a cheque for $125 (payable to 'ASIC') to: The Credit Licensing Team, ASIC, Locked Bag 5000, Gippsland Mail Centre 3841, Ground Floor 14-22 Grey Street, Traralgon Victoria 3844. For urgent applications, you can scan the completed documents and email them to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , and mail the paper copy and attached cheque to the above address.

Where to get more information ·         Go to www.asic.gov.au/credit for the latest information on credit and to download copies of the regulatory guides. ·         Subscribe to ASIC updates on credit at www.asic.gov.au/credit-update ·         ASIC Infoline 1300 300 630 ·         This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Download PDF version of this page

Walker and Miller offer a full Australian Credit License Solution click here for details


Important notice
Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. Omission of any matter on this information sheet will not relieve a company or its officers from any penalty incurred by failing to comply with the statutory obligations of the National Credit Act.

You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.

Click Here for further information

This is Information Sheet 127 (INFO 127). Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.

MFAA Logo

Upcoming Courses

Credit Licencing | Mortgage Broker Training | Accredited Broker

Nationally accredited courses are delivered in partnership between Walker & Miller Training and the National Finance Institute, a Registered Training Organisation (RTO 31203).  All qualifications are awarded by the National Finance Institute (RTO 31203)