In the new breach regime, what are the ACL’s core obligations?
If you are an Australian Credit Licensee, your core obligations under s47 of the National Consumer Credit Protection Act include obligations to:
- do all things necessary to ensure that the credit activities covered by your licence are provided efficiently, honestly and fairly;
- have in place adequate arrangements for the management of conflicts of interest;
- comply with the conditions of your licence;
- take reasonable steps to ensure that your representatives comply with the credit legislation;
- comply with the ASIC reference checking and information sharing protocol;
- be competent to engage in the credit activities covered by your licence;
- have trained and competent representatives;
- have a dispute resolution system for retail clients that complies with ASIC Standards and requirements;
- be a member of the AFCA scheme;
- have compensation arrangements in accordance with s48;
- have adequate arrangements to ensure compliance with your obligations under this section;
- have adequate resources available to engage in the credit activities covered by your licence and carry out supervisory arrangements (unless you are a body regulated by APRA);
- have adequate risk management systems (unless you are a body regulated by APRA); and
- comply with any other obligations prescribed by the National Credit Regulations.