Declarations by applicant

Your application must contain a statement declaring that none of the people listed in the statement has been the subject of any of the specified orders or outcomes that affect ASIC’s ability to licence you. The people listed in the statement are you, as the applicant, and any of the following persons who would perform duties in relation to the credit activities to be authorised by the credit licence:
  • if you are a company or other body corporate—each director, secretary and senior manager;

  • if you are a partnership—each partner; or

  • if you are a multiple trustee—each trustee.

Statement to be made by standard applicants

The statement that you must be able to make in relation to each person is that:

  • the person’s registration or licence under the credit legislation or their AFS licence has never been suspended or cancelled;

  • a banning order or disqualification order under Pts 2-4 of the National Credit Act or Div 8 of Pt 7.6 of the Corporations Act 2001(Corporations Act) has never been made against the person;

  • an order under the relevant State Criminal Organisations Acts has never been made against the person;

  • the person has never been banned from engaging in a credit activity under a law of a state or territory (whether as a result of a licence or registration being suspended or cancelled, or as a result of injunctions or other orders of a court);

  • the person has never been insolvent (this statement is not required for multiple trustees, but it must be true for each individual trustee that makes up the multiple trustee);

  • the person has never been disqualified from managing corporations under Pt 2D.6 of the Corporations Act; and

  • the person has no criminal convictions within the last 10 years.

Each of these statements is relevant to whether you are a fit and proper person to engage in credit activities.

If you cannot agree that each of these statements is true for you and each of the people referred to above, you will need to provide an explanation of why you cannot make the statements. This explanation may include any mitigating circumstances and any comments you have on why you consider that this does not affect whether you are a fit and proper person to engage in the credit activities that will be authorised by your credit licence (if a licence is granted).

Background checks that can be made

To make these statements, you may need to complete some background checks on the listed people. Checks that you can make include those listed in this table.

Table: Background checks

Where checks can be made

Type of information

ASIC (online or at ASIC Business Centres)

Personal name searches that include all action taken against a person under the Corporations Act (including suspension or cancellation of licences, banning orders and disqualification from managing corporations)

Banned person registers for credit and financial services

Lists of persons who have been banned from engaging in a credit activity under a law of a state or territory. These lists have been provided to ASIC by relevant authorities of each state and territory.

Australian Federal Police

State and territory police services

Brokers accredited by CrimTrac

National criminal history checks (see Section E pf RG 204 for more information)

Index Search Agents authorised by Australian Financial Security Authority (AFSA):

  • Australian Business Research

  • CITEC

  • Espreon Property Services

See www.afsa.gov.au for contact details

Search of the National Personal Insolvencies Index

Statement to be made by streamlined applicants

The statement that you must be able to make in relation to each person is that:

  • a banning order or disqualification order under Pts 2-4 of the National Credit Act or Div 8 of Pt 7.6 of the Corporations Act is not in force against the person; and

  • an order under the relevant State Criminal Organisations Acts is not in force against the person.

If you cannot agree that each of these statements is true for you and each of the people referred to above, you will need to provide an explanation of why you cannot make the statements. This explanation may include any comments you have on why you consider that the orders would not result in you being excluded from being granted a credit licence by s40 of the National Credit Act.

See the table for information on background checks that you can make to help you make these statements.

Declarations

To complete the application, you must make declarations that:

  • the application is submitted under the terms and conditions of the ASIC Electronic Lodgement Protocol, including that a signed copy of the application will be maintained by you;

  • to the best of your knowledge, the information included in the application is complete and accurate; and

  • if the licence is granted, you will comply with your obligations as a credit licensee.

Where you engage in a credit activity by being a credit provider, lessor, mortgagee or beneficiary of a guarantee in relation to a carried over instrument and intend to also engage in other credit activities, you must also declare that the application is made in relation to each of these credit activities.

If the application is submitted by a lodging agent, an additional declaration will be displayed that:

  • under cl 16.2 of the ASIC Electronic Lodgement Protocol the person is authorised to submit the application on your behalf; and

  • the person is authorised by you to make declarations on your behalf.

How statements and declarations are made

Each of these declarations will be taken to have been made by you when the ‘Submit’ button is pressed.

Before the application is submitted, you should ensure that you:

  • provide the person who is completing the application on your behalf with all information necessary to complete the application;

  • review the application to ensure that the information in it is complete and accurate; and

  • have authorised the person who prepares and submits the application to make statements and declarations on your behalf.

You should review your application carefully before you, or your lodging agent, submit it. Make sure your answers are correct. Once your application has been submitted you will not be able to change your answers.

If you include a false or misleading statement in, or omit a material matter from, your application, we can refuse your application. It is also a criminal offence to make false or misleading statements in, or omit a material matter from, your application.


This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00