Gadens has released guidance on how to display ACL numbers as the 1 April deadline approaches.
From April 1, brokers and lenders will be required to display their ACL numbers on NCCP documents. Gadens Lawyers' Jon Denovan has offered guidance on which documents will have to display the information, and when brokers and lenders will have to display it.
Under the NCCP, documents such as credit guides, quotes, PDS documents credit contracts and printed advertising will have to include the licence number of the ACL holder. Denovan said these, along with NCC notices, mortgages or any documents lodged with ASIC relating to "the provision of regulated credit" will have to bear information.
"This is an important requirement as a breach can incur a civil penalty of $220,000 for individuals or $1.1m for companies," Denovan said.
Credit reps, however, have not been issued any specific requirements relating to displaying their credit representative numbers, except in credit guides. Regardless, Denovan said credit reps would be well served to follow the same guidelines as ACL holders.
"It would be wise for credit representatives to show their CR number on all documents listed above where the licensee’s ACL number must be shown," he said.
When displaying the number, Denovan said credit reps were required to label the information "credit representative number", rather than "CR". Denovan said the "CR" abbreviation was not acceptable under NCCP guidelines.
Denovan also endeavoured to specify the types of advertising required to bear the ACL holder's licence number. The NCCP stipulates that printed advertising relating to the provision of regulated credit include an ACL number. Denovan said this included flyers, billboards, "boxed out" newspaper advertising and "words or pictures that amount to more than a mere listing in the white pages or yellow pages". However, he claimed that according to ASIC's RG13, it appeared web advertising did not fall under the definition of printed advertisements.
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