Updates made to RG 203

ASIC has updated its Regulatory Guide 203 Do I need an Australian credit licence? In order to help individuals in the credit industry decide whether they engage in credit activities and whether they need a credit licence, as well as aid existing licensees who need to understand when certain exemptions can (and can’t) be relied on.

The regulator says RG 203 has been updated to reflect the current form of NCCP and remove information that is no longer relevant since the end of the transitional registration regime, provide additional guidance on the different types of credit activities and offer additional information about licence exemptions.

“ASIC has also made structural changes to RG 203 clarifying the three main things individuals and entities should consider when deciding whether they need an Australian credit licence.” According to the regulator’s website, these include:

1. Whether the provision of credit or consumer lease is regulated under the National Credit Code. If it is not, the licensing requirements in the National Credit Act will not apply. A number of exclusions you should be aware of are outlined in the guide;
2. If it is regulated under the National Credit Code, whether you engage in one or more of the specified types of activities in relation to that provision of credit or consumer lease and
3. If you do engage in credit activities, whether one or more of the licence exemptions apply. All of the current exemptions are outlined in the guide.

ASIC says these changes have been made to ‘clarify the guidance included in RG 203’, rather than make substantive changes to ASIC’s approach to administering the credit licensing regime. To view the RG 203 in full, CLICK HERE