Business activities

You will be asked to answer a group of questions that are designed to provide a description of the size and nature of your business activities.

All applicants will be asked to answer these questions because they help us to understand how your business will work and the relevance of the licence authorisations you have selected. Your responses will also help to provide an overview of the size and nature of the credit industry, and will help ASIC develop procedures for later surveillance of the credit industry.

You will be asked to select the activities that best describe the business you intend to engage in if a credit licence is granted, and the types of credit contracts and consumer leases that those activities will relate to.

We will check whether the authorisations you selected at question A6 are appropriate to the business activities that you select. If they are not, we will contact you to clarify what sort of activities you intend to engage in and ensure that you have applied for the correct authorisations.

Lenders mortgage insurers

If you are a general insurer and you select the business description ‘lenders mortgage insurer’, you will be asked whether you will engage in credit activities only as an assignee in relation to mortgage insurance products provided by you.

If you answer ‘yes’:

  • you will be treated as a streamlined applicant (if you have selected the ‘Engage in credit activities as a credit provider or lessor’ authorisation at question A6), and the remainder of the application will be tailored to reduce the amount of information that you must provide; and

  • the authorisation on your licence (if it is granted) will be limited to only cover credit activities engaged in by you as an assignee, or as a credit provider under the doctrine of subrogation, in relation to mortgage insurance products provided by you.

If you answer ‘no’:

  • we will contact you to check whether you want to engage in credit activities other than as a lenders mortgage insurer. You will not be entitled to the streamlined application process, and so will be treated as a standard applicant; and

  • your licence (if it is granted) will contain the full authorisation to ‘Engage in credit activities as a credit provider or lessor’.

Life insurers

If you are a life insurer and select the business description ‘other’, you will be asked whether you will engage in credit activities in relation to the provision of credit only because of the operation of the terms and conditions of a life policy, or a document issued or given by you in relation to a life policy, that was entered into by you before 1 July 2010.

If you answer ‘yes’:

  • you will be treated as a streamlined applicant (if you have selected the ‘Engage in credit activities as a credit provider or lessor’ authorisation at question A6), and the remainder of the application will be tailored to reduce the amount of information that you must provide; and

  • the authorisation on your licence (if it is granted) will be limited to only cover the credit activities engaged in by you as a life insurer in accordance with the terms and conditions of a life policy entered into before 1 July 2010, or a document issued or given by you in relation to a life policy, that was entered into by you before 1 July 2010.

If you answer ‘no’:

  • we will contact you to check whether you want to engage in credit activities other than as a life insurer that lends in accordance with the terms and conditions of a life policy entered into before 1 July 2010. You will not be entitled to the streamlined application process, and so will be treated as a standard applicant; and

  • your licence (if it is granted) will contain the full authorisation to ‘Engage in credit activities as a credit provider or lessor’.

Assignee debt collectors

An ‘assignee debt collector’ is a person to whom certain rights of a credit provider, lessor, mortgagee or beneficiary of a guarantee have been assigned or passed by law. These rights are to collect a debt owing under a credit contract or consumer lease by:

  • demanding and receiving payments from borrowers or guarantors under credit contracts, or lessees under consumer leases; and

  • enforcing rights in relation to taking possession of property secured by a mortgage or goods hired under a consumer lease,

Note: A person who engages in credit activities in the course of collecting debts on behalf of a credit provider or lessor (rather than as person who has become a credit provider by assignment) may be covered by the exemption from the requirement to hold a credit licence in reg 21 of the National Credit Regulations. If a person who is covered by reg 21 in relation to some credit activities also engages in credit activities as an assignee debt collector, they will still need to hold a credit licence for their conduct as an assignee debt collector.

If you select the business description ‘assignee of debts’, you will be asked whether you will engage in credit activities only as an assignee debt collector.

If you answer ‘yes’, your licence (if it is granted) will be limited to only cover credit activities engaged in by you as an assignee debt collector. If you answer ‘no’, your licence (if it is granted) will contain the full authorisation to ‘Engage in credit activities as a credit provider or lessor’, and your application will be assessed on this basis.

Information for credit licence fee calculation

You will be asked to calculate the total amount of credit you have advanced, been assigned or successfully referred to a credit provider and the amount of rent payable under consumer leases that you have entered into or successfully referred to lessors in the financial year before the application is made. You will need to add together:

  • the total amount of credit advanced by you in the financial year before the application is made;
  • the total amount of credit assigned to you in the financial year before the application is made (based on the face value of the credit, rather than the resale or purchased value of the credit);
  • the total value of credit in applications submitted by you to credit providers and intermediaries in the financial year before the application is made that have resulted in a loan being made;
  • the total amount of rent payable by consumers under consumer leases entered into by you in the financial year before the application is made; and
  • the total amount of rent payable by consumers under consumer leases submitted by you to lessors and intermediaries in the financial year before the application is made that have resulted in a consumer lease being entered into.

For more information on what amounts you need to take into account when you make your calculation, see RG 204.52–RG 204.55.

You will then need to:

  • select from the list in the online application the appropriate range that covers the total sum that you have calculated; and
  • indicate whether you are a ‘sole trader’.

For more information on the ranges that you will be asked to select from, the meaning of ‘sole trader’ and the effect that this will have on the application fee, see RG 204.56–RG 204.57.


This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00