If you’re thinking about applying for an Australian Credit Licence (ACL), one of the first questions is usually: how long will it take?
Currently, we’d suggest around 3–6 months from lodgement.
Of course, the better prepared and more straight forward an application, the better your chances of getting to the end of the process sooner.
According to ASIC, their current service standard as of writing this article is:
- 70% of complete ACL applications within 150 days (about 5 months).
- 90% within 240 days (about 8 months).
And remember, that’s from lodgement of a complete application. It doesn’t include the work required to get your ACL application ready to submit.
What needs to be done before you apply for an Australian Credit Licence?
There’s quite a bit that goes on before you hit the submit button.
This can include preparing the ACL application itself, drafting the required business description and making sure the key people behind the licence — including your Responsible Managers — can demonstrate they have the experience, qualifications and supporting evidence that ASIC expects.
Getting this right at the beginning can make a significant difference once your application reaches ASIC.
What can delay an ACL application?
ASIC may ask questions about the application or the intended licensee.
For example,
- Planning to appoint Authorised Credit Representatives (ACRs)? ASIC may ask to see documents such as your Adequacy of Resources Policy, your Compliance Plan and your Training Plan.
- Outsourcing parts of your business? It is very common to outsource functions for your business, like legal, marketing or compliance. ASIC may seek more information about how you would manage these relationships and what controls you have in place to avoid your contractors overstepping their authority.
- Cross-selling other products, such as warranties? ASIC may want to understand how you’ll identify and manage potential conflicts of interest. (Hint: this is where a good Conflicts of Interest Policy can come in handy!)
These are all things that can delay an application… but the good news is, we’ve seen all these things before and we can help you get the right frameworks in place to give you a great chance of having a positive outcome..
Thinking about applying for your own Australian Credit Licence? Get in touch on 0435 562 801 — we’re always happy to have a chat.