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Home Forums Australian Credit Licensing (ACL) Forum Do we need credit reps

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    I work for a business (RE) that sells a consumer product.  This business holds a 45% share of a business (ACL Holder) that provides finance to consumers to purchase the product.  The only business the ACL holder does is for the RE and the only type of finance they offer is for the purchase of the product.  Should the sales staff for the RE (who all are AR’s) be registered as credit reps or would they qualify as exempt as Point Of Sale or even related body corporate?

    #3114 Reply

    Typically, a third party individual or company (that is an individual who is not a director or employee of the licensee, or of a related body corporate of the licensee) seeking to engage in credit activities on behalf of a licensee needs to be appointed by the licensee as a credit representative, unless an exemption applies.


    The National Consumer Credit Protection Regulations 2010 provide an exemption for employees and directors of a related body corporate, as defined in the Corporations Act 2001. There is also an exemption for suppliers of goods and services who provide credit assistance in relation to a linked credit provider.  This sounds the most likely to apply to your situation.


    However, we would need to consider the circumstances in more details in order to determine if you would meet the requirements of these exemptions.


    Feel free to give us a call if you would like some advice.


    Author: Kathryn Wardrobe

    Co-contributor: Chris Wallace


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