The Australian Securities and Investments Commission (ASIC) will today start issuing credit licences after a three-month registration process that saw almost 15,000 applications.
Enactment of last year’s National Consumer Credit Protection Act, aimed at raising standards across the credit industry, means providers of credit, credit assistance and intermediaries need a credit licence from ASIC effective from 1 July 2010.
Those who have already registered can continue providing credit services and have until 31 December to apply for a licence, while those who have not registered must immediately stop engaging in credit activities until they have been granted a licence.
Applicants had to meet preliminary registration thresholds, including membership of an ASIC approved external dispute resolution scheme and declarations that officers of the registered entity meet a ‘fit and proper person’ test, according to ASIC.
“We have been very pleased with the positive response to registration, which effectively has been a ‘roll-call’ of the consumer credit industry,” said ASIC commissioner Dr Peter Boxall.
“ASIC will closely monitor activity during the licensing period to identify any practical or regulatory issues that emerge that emerge during transition to the National Credit Regime, and issue further guidance, or provide additional support if necessary.”
