Australian Credit Licensing (ACL) Forum

Home Forums Australian Credit Licensing (ACL) Forum What do I do if a responsible manager has left the organisation?

This topic contains 0 replies, has 1 voice, and was last updated by  Archived User 10 years, 2 months ago.

Viewing 1 post (of 1 total)
  • Author
    Posts
  • #2373 Reply

    If you are an Australian Credit Licensee, your Responsible Managers (RMs) are important because it is through these RMs that you demonstrate to ASIC that you have the competency to provide the credit services you are licensed to provide.

     

    At all times you must maintain this competency. This obligation is set out in paragraph 47(1)(f) of the National Consumer Credit Protection Act 2009.

     

    Check that you can still maintain competency
    When an RM leaves your organisation, the first thing you need to turn your mind to from a licensing point of view is whether you can satisfy this obligation with your remaining RMs, or whether you need to nominate an additional RM with whom you can demonstrate the necessary competency with ASIC.

     

    To refresh your memory in relation to your competence requirements, we suggest referring to ASIC’s Regulatory Guide 206 Credit licensing: Competence and training.

     

    Check for a key person condition
    The next important step is to look at the conditions of your ACL. Many ACLs have a “key person” condition, which identifies an RM who is considered to be of particular importance to the licensee. Look at your ACL to see whether a key person condition applies to the departing Responsible Manager.

     

    As well as identifying key persons (if any), the condition sets out what you need to do. You will need to promptly notify ASIC of the departure of the RM, and apply to vary your ACL. This will require providing ASIC with information about the proposed RM, including supporting documentation such as a credit history check and criminal history report relating.

     

    Information about varying your ACL can be found in ASIC’s Regulatory Guide 204, Applying for and varying a credit licence.

     

    Notifying ASIC
    If the departing RM is not identified as a key person on the ACL, you do not need to notify ASIC immediately. However, you will need to notify ASIC at the time you are required to complete your annual compliance certificate.

     

    Author: Sonnie Bailey

     

Viewing 1 post (of 1 total)

Reply

Reply To: What do I do if a responsible manager has left the organisation?

Your information:


<a href="" title="" rel="" target=""> <blockquote cite=""> <code> <pre> <em> <strong> <del datetime=""> <ul> <ol start=""> <li> <img src="" border="" alt="" height="" width="">

  • Free answers to common Financial Services Regulation (FSR), Consumer Credit and AML/CTF issues.

    Click here to join our LinkedIn group for responsible managers and compliance professionals.
    joinUsOnLinkedIn
  • Training

    Regulatory Compliance Training for Directors, Responsible Managers and Compliance Staff

    View Courses

  • Legal Advice

    Review your AFSL or ACL disclosure documents, conduct a licensee audit and more…

    Get Legal Advice

  • Compliance support

    The HN Hub – an online platform built to support Responsible Managers and Compliance Staff

    More