Summary business description

If a ‘yes’ answer was given to any question in the Statement of Personal Information, you must also provide:

  • a document that sets out a full explanation of each matter. If you want, this explanation can include any mitigating circumstances and any comments that you may have on whether:

    • the matter affects whether the person is a fit and proper person to be involved in your credit business; or

    • the person’s involvement in your credit business will affect whether you are a fit and proper person to engage in credit activities;

  • if the matter involves a judgement in administrative, civil or criminal proceedings, a copy of the judgement and an indication of whether it has been satisfied;

  • if the matter involves a declaration of bankruptcy or insolvency, the date of the declaration and district in which it was made and the bankruptcy number; and

  • if the matter involves a deed of arrangement, assignment or acceptance by creditors of a composition under Pt X of the Bankruptcy Act 1966, the date of the deed of arrangement, assignment or the special resolution accepting the composition, and the district in which it was made; the name and address of the trustee of the deed of arrangement, assignment or composition; and the identifying number for the deed of arrangement, assignment or composition in the office of the Registrar of Bankruptcy.

Summary business description

You must provide a document that describes your proposed business.

This document is an overview of what your business will involve and how you will operate it in practice. Details that should be provided include:

  • the credit activities that you will engage in (which may be all or only some of those that are covered by the authorisations you have applied for);

  • the types of credit products to which your activities will relate (e.g. home loans, secured personal loans, unsecured loans, credit cards);

  • how you will assess applications for credit (e.g. whether you will provide ‘low’ document loans);

  • your distribution model (e.g. whether you will rely on consumers to approach your business at branch offices, or will visit consumers at their own premises, or promote and provide credit products or credit services through telephone calls, the mail or the internet);

  • your remuneration structure (e.g. whether you receive commissions for your credit services, or up-front fees);

  • how many offices you will have, how geographically diverse your business is and how you supervise your representatives if they are located away from your main offices; and

  • if you will outsource functions, who you will outsource your functions to, where the outsourced service provider is located and how you have decided on them as an appropriate person to provide these functions for you.

This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00