63Guide to this Part

63  Guide to this Part This Part is about credit representatives of licensees (which are a particular type of representative of licensees). A person who is authorised as a credit representative of a licensee does not need to hold an Australian credit licence when engaging in credit activities on behalf of the licensee. This Part also deals with information that ASIC may give to licensees about their representatives (such as their employees, directors and credit representatives, and persons who act on their behalf), and the liability of licensees for their representatives. Division 2 deals with how a credit representative may be authorised to engage in credit activities on behalf of a licensee. It also deals with certain obligations of licensees in relation to the authorisation of their credit representatives. Division 3 deals with information about representatives that ASIC may give to a licensee and the use of that information. Division 4 deals with the liability of licensees for the conduct of their representatives. Division 2—Authorisation of credit representatives 64  Licensee may authorise credit representatives Authorisation of credit representative by licensee  (1) A licensee may give a person a written notice authorising the person to engage in specified credit activities on behalf of the licensee.  (2) A person who is authorised under subsection (1) is a credit representative of the relevant licensee.  (3) The credit activities specified may be some or all of the credit activities authorised by the licensee’s licence. When authorisation is of no effect  (4) The authorisation:  (a) is of no effect if subsection (5) applies to it when it is given; and  (b) ceases to have effect if and when subsection (5) starts to apply to it after it is given; to the extent that subsection (5) applies.  (5) This subsection applies to the authorisation to the extent that it purports to authorise:  (a) a person to engage in a credit activity that is not authorised by the licensee’s licence; or  (b) a person to engage in a credit activity, and a banning order or disqualification order under Part 2‑4 is in force against the person in relation to the credit activity; or  (c) a person who is not a member of the AFCA scheme to engage in a credit activity in relation to a contract that is not a low cost credit contract; or  (ca) a person who is not a member of the AFCA scheme to collect, on the licensee’s behalf, repayments made by a debtor under a low cost credit contract; or  (d) a person who is banned from engaging in a credit activity under a law of a State or Territory; or  (e) a natural person who has been convicted, within the last 10 years, of serious fraud; or  (f) a natural person against whom a prescribed State or Territory order is in force; or  (g) a person that is a body corporate, if a prescribed State or Territory order is in force against a director, secretary or senior manager of the body corporate who would perform duties in relation to the credit activities specified in the authorisation; or  (h) a person that is a partnership or the trustees of a trust, if a prescribed State or Territory order is in force against a partner or trustee who would perform duties in relation to the credit activities specified in the authorisation.