See the one page mind map which provides a snapshot of the general conduct obligations.  Click on the diagram to download it.

When do you need to comply?

You must comply with the general conduct obligations from the time your credit licence is granted, and on an ongoing basis. (NB. Responsible lending obligations, distinct from general conduct obligations, come into force at prescribed dates depending on the obligation and the nature of your business.)

What does ASIC expect?
ASIC does not expect your business to be fully operational (and therefore compliant) at the time you apply for a licence.  However, when you apply, ASIC expects that your measures to ensure compliance with the general conduct obligations will be adequate.  When considering the adequacy of your compliance measures, ASIC will consider the nature, scale and complexity of your business.

All of your compliance measures must be:

• documented in some form;
• fully implemented and their use reported on; and
• regularly reviewed. 

For more information go to ASIC’s credit website or view the Regulatory Guide in full, at: http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg205.pdf/$file/rg205.pdf

Author: Kathryn Wardrobe

Partner : Tim Nethercote

Phone:+61 3 96708200

Please comment below,or contact us for assistance

General conduct obligations of credit licensees: an overview of RG 205 by Holley Nethercote Commercial Lawyers is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia Licence.

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