Obtaining an Australian Credit License can seem a daunting task. If you are considering obtaining a license, the following provides an insight into the preparation needed for the licensing process.

1. What authorisations do I need on my license?

  • Will you be a provider of a credit facility or lessor?
  • Will you provide credit services as an intermediary?
  • Will you engage in all credit activities?

2. Fit and Proper Persons and nominated Responsible Manager/s?

When applying for a credit license ASIC will need to be satisfied that the person/s engaging in credit activities are fit and proper for the purpose. This means, the person:

  • Is competent to operate a credit business
  • Is of good character
  • Has not been disqualified from performing a role in a credit business
  • Has no material conflicts of interest in performing their role

The persons you nominate as Responsible Managers must have the requisite experience, skills and knowledge (Qualifications) to cover the authorisations being selected.

It is preferable for a business to have two or more Responsible Manager however there are circumstances where this may not be possible. If ASIC determines there is a heavily reliance on one or more Responsible Managers to cover the selected authorisations, they may impose a Key Person provision on the license. If you think this may be the case, please contact us.

All nominated Responsible Managers will be required to submit:

  • A current Police Check
  • A Current Bankruptcy Check
  • Curriculum Vitae
  • Qualifications

3. What information do I provide ASIC with my application?

When a license application is submitted it must be accompanied by ‘Proof Documents’. Initial proof documents required for an AFS application are:

  • Summary of Business Description
  • Experience of Responsible Managers and Executives

During the assessment process, ASIC may request additional information on how you intend to manage the following areas of your business:

  • Compliance Arrangements
  • Supervising and Training Representatives
  • Adequacy of Resources
  • Disputes Resolution and Hardship Applications
  • Risk Management
  • Compensation Arrangements

4. The Licensing Process

The following diagram shows the general process involved in obtaining a license, including ongoing obligations. There are streamlined applications however the process can be take much longer. In other words, it would be wise to clearly establish when you want to the license to commence.


Before the license is granted, you will be required to confirm compensation arrangements are in place and membership to External Disputes Resolution scheme.

5. Post License

Having obtained your Australian Credit License it is important to understand your ongoing obligations. ASIC expects you will have in place a robust compliance regime, contextualised the size and complexity of your organisation.