ACL Solutions for ASIC Regulated Lenders | Pre-licensing Assessment | ACL Application Management | Post-licensing Risk and Compliance Support

We offer a comprehensive set of solutions to help you obtain and maintain an Australian Credit Licence (ACL) issued by the Australian Securities and Investments Commission (ASIC), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• ASIC regulated lenders’ obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the Australian ACL licensing regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the ACL licensing process, including but not limited to the following aspects:

• Australian Credit Licence Guidance: Advising on a wide range of aspects associated with Australian ACL licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:

• Drafting the necessary policies and procedures to help you comply with the Australian credit licence requirements and the ASIC regulated lenders' obligations
• Developing internal controls to help you meet your obligations under the Australian ACL licensing regime

• ACL Application Support: Covering the entire ACL licensing process
• Post-licensing Support: Covering

• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the Australian credit licence. In Australia, entities that operate a consumer lending service must hold an Australian Credit Licence (ACL) from ASIC. An ACL authorises credit activities under the NCCP Act, such as acting as a credit provider or providing credit assistance/intermediation.

Depending on the platform structure, additional requirements may apply - for example, an AFSL or MIS authorisation where investor funds are pooled into a managed investment scheme, and AUSTRAC registration for AML/CTF compliance where designated services are provided.

We offer support for ACL applications tailored to a wide range of platforms, including:

• Non-bank lenders
• Personal Loan Platforms
• Mortgage brokers
• Real Estate Consumer Lending Platforms
• Peer-to-Peer (P2P) lending platforms
• Debt Consolidation Lending Platforms
• Microfinance Consumer Lending Platforms
• Community-Based Consumer Lending Platforms
• Vehicle Finance Platforms
• Buy Now Pay Later (BNPL) Consumer Credit Platforms

You can find more information about our Australian credit licence solutions below:

 

ACL Licensing Preparation

Pre-licensing Compliance Assurance

Our Australian credit licence solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for an Australian credit licence
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the ACL licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your Australian credit licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• ACL Application Plan: We help you establish a roadmap to meet the requirements of the Australian credit licence effectively

 

Australian credit licence Guidance

Selecting the right compliance model is crucial not only for navigating the ACL licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our ACL licensing solution covers:

• Compliance Model Selection: To help you best comply with the Australian ACL licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the ACL licensing regime and other applicable ASIC regulated lenders’ obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Entering ACL Regulated Environment

We help businesses transition from an unregulated environment to operating under the ACL licensing regime, helping them meet their obligations as a Australian credit licence holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the ACL licensing regime requirements. Our focus areas for this service include:

• New businesses
• Existing Australian 2P2 lending platforms operating in unregulated markets
• Australian consumer lending services expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce operating a consumer lending platform as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with consumer lending obligations globally.

 

Australian Credit Licence and Wholesale Markets

Obtaining an Australian Credit Licence (ACL) may not be necessary or suitable for all lenders, particularly where lending activity is limited to wholesale or business borrowers. Wholesale or business lending models generally fall outside the scope of the Australian Credit Licence (ACL) regime under the NCCP Act, as they do not involve regulated consumer credit contracts.  We offer risk and compliance solutions for platforms that:

• operate exclusively in wholesale or business lending markets,
• do not require an ACL due to the absence of regulated consumer credit activity, and
• (where applicable) offer interests to wholesale investors under the Corporations Act as part of an AFSL/MIS structure.

We help manage obligations that may still apply, including:

• Corporations Act obligations where an AFSL/MIS is also required,
• Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) compliance
• (If AFSL/MIS applies) product governance (DDO) and disclosure for retail financial product offerings
• Restrictions on making offers to retail clients without a disclosure document (financial products only), and
• Governance, risk management, and outsourced provider oversight.
• Misleading or deceptive conduct controls
• Privacy Act 1988 (APPs)
• Unfair contract terms (under the Australian Consumer Law)

 

ACL Application

We can assist with your ACL application through ongoing engagement in the ACL licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your ACL application.
• ACL Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your ACL application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the ACL licensing.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the ACL application process on track.

 

Resolving Australian Credit Licence Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our Australian credit licence solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Australian Credit Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the Australian ACL regime.
• Specific ACL Conditions Compliance: We can help you manage additional conditions imposed on your Australian credit licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the ACL licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed ACL holders. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• ASIC Regulated Lenders’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the ACL licensing regime and other regulatory compliance obligations. You can visit our Compliance Advisory page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Consumer Lenders.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• ASIC regulated lenders’ obligations for risk, regulatory compliance management, and consumer lending regulations. You can visit our Compliance Training page for more information.
• ASIC regulated lenders' AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for ASIC regulated lenders. For more information, visit our Specialised AML/CFT Solutions page for Consumer Lenders.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Australian Credit Licence Holders

Australian credit licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

Australian Credit Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under RG 104).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil ASIC regulated lenders’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the ACL licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the ACL regime for regulated lenders.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet ASIC regulated lenders' obligations for maintaining required financial resources (as required under RG 166).
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the ACL regime for lenders.
• Digital Payment Token Services: We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the ACL regime for lenders and AML/CFT requirements for transaction monitoring and reporting (see Information Sheet 225 (INFO 225) for more).
• Credit Intermediation and ACL Licensing Risk: We can help you prepare controls and procedures to manage credit licensing risks where your platform activities may fall within the scope of credit assistance under the National Consumer Credit Protection Act 2009 (as may be required under RG 203 and RG 209).
• Responsible Lending Obligations: We can help you implement processes and controls to meet the responsible lending requirements under the NCCP Act and ASIC Regulatory Guide 209, including borrower suitability assessments and verification of financial information.

 

Australian Credit Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with ACL licensing obligations for overseeing outsourced services (as required under RG 104 and RG 105), also covering related obligations under AML/CTF compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with ASIC regulated lenders' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with ASIC regulated lenders’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet ASIC regulated lenders’ obligations for operational resilience, helping critical business services withstand disruptions (as required under ASIC Report 708 and other publications).
• Breach Reporting: We can assist in developing and maintaining breach reporting procedures in line with ASIC’s requirements under RG 78, ensuring timely reporting of significant breaches to the regulator.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the ACL regime for lenders.
• Platform Access and Due Diligence on Borrowers: We can help you develop onboarding, due diligence, and monitoring controls for businesses or issuers raising funds through your platform, including AML/CTF obligations, background checks, and suitability assessments.
• Dual-Sided Platform Conflict Controls: We can help you develop documented procedures to identify and oversee conflicts of interest where your platform facilitates both lending and borrowing activity (as required under RG 104).
• Contract Structure and Licensing Exposure: We can help you assess your lending structure and document controls where nominee, trust-based, or custodial arrangements may trigger additional ACL or AFSL authorisations (as required under RG 132 and Corporations Act).
• Dispute Resolution Scheme Membership: We assist credit licence holders with AFCA membership applications, dispute handling procedures, and internal escalation processes in line with ASIC RG 271 and NCCP Act obligations.

 

Australian Credit Licence and Market Integrity/Transparency Requirements

• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with ACL licensing standards for conduct and disclosure.
• Misleading and Deceptive Conduct Controls: We can help you establish controls to prevent false or misleading representations in advertising and client communications, in line with ASIC Act s12DA and NCCP Act provisions.
• Product Suitability and Governance: We can establish tailored controls to help licensed consumer lending platforms comply with product suitability obligations.
• Protection of Client Assets: Where escrow is outsourced or not in scope, we can help you comply with ACL licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients (as required under RG 271).
• Advertising and Communications Oversight: We can help you develop controls for your marketing and promotional materials to ensure compliance with restrictions on advertising consumer lending offers, including social media monitoring and fair representation of investment risks.

 

 

Australian Credit Licence and Resource Management Obligations

We can help you comply with the following requirements of the ACL framework for consumer lending platforms:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the ACL licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Staff Vetting and Rescreening: We can help you develop a framework for vetting and rescreening staff in line with the requirements of the ACL licensing regime, AML/CFT laws, and other applicable regulations, with checks calibrated to the level of risk and responsibility associated with each role.
• Key Personnel Assessment: We can help you assess key personnel's skills, qualifications, and experience to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and consumer lending regulations.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.
• Investment Cap and Transaction Limits Controls: We can help you implement automated and manual controls to monitor investor contribution limits, deal caps, and maximum investment thresholds required by the ACL licensing regime.

• Custodial Triggers: We can help you assess your platform structure and prepare controls to address obligations around pooled funds or trustee arrangements (as required under RG 132 and Corporations Act s601ED).

 

ASIC Regulated Lenders and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • ACL licensing obligations, including those under the RG 78.
  • ACL holders' AML/CTF obligations (SMRs, cross-border transaction reports (IFTIs), cash transaction reports TTRS, and other reporting obligations)
  • ASIC-regulated ACL holders' obligations under financial market regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the ACL framework for consumer lending platforms, applicable operational standards, and more.

 

Related Licensing Solutions

We can help you apply for the Australian credit licence equivalents in the following jurisdictions: