The Australian Credit Licence Application Process

Identify precisely which credit activities you intend to perform — broker, lender, asset finance or residential. Each carries different obligations, and your authorisations also shape the Responsible Manager requirements, the fee tier, and the compliance framework you must build.

Select individuals with the skills, knowledge and experience to oversee each authorised activity, and document their qualifications and industry experience. Remember, they must be involved in day-to-day decision making once the licence is granted.

Have your governance documents ready to go, or make arrangements to have them drafted — for example, your Compliance Plan and your Risk Management Policy.

Organise your AFCA membership and arrange Professional Indemnity insurance cover. Both are required before ASIC will grant the licence.

Submit your application to ASIC, pay the relevant fee and provide all supporting documents.

ASIC may request further information. Respond promptly and completely — delays here are the single biggest cause of extended timelines.

Maintain your compliance arrangements, pay annual levies, and notify ASIC of any material changes to your business.

ASIC must be satisfied on several core matters before ASIC will grant a licence:

1. Adequate resourcing — financial, technological and human resources to carry on the business.
2. Competent Responsible Managers — at least one person nominated to oversee the business.
3. Fit and proper persons — the licensee and its officers must meet character standards.
4. Compliance arrangements — compliance frameworks, policies and processes.
5. No disqualifications — no banned or disqualified persons in key roles.

ASIC's published service standard is to assess a complete application within 150 days, but straightforward applications can be decided sooner. The process takes longer when:

• The application is incomplete or missing supporting documents
• ASIC requests further information about Responsible Managers or compliance arrangements
• The applicant has a complex corporate structure

Prepare thoroughly to avoid the most common cause of delay — ASIC's requests for further information.

ASIC charges application fees that vary by the authorisations sought. As a guide:

• Limited authorisation (e.g. broking only): a lower tier fee
• Full authorisation (providing and broking credit): a higher tier fee

In addition to the application fee, licensees pay an annual levy and may incur costs for compliance setup, EDR membership, professional indemnity insurance, and legal advice.