8How to get an Australian credit licence—streamlined process for particular classes of applicants

#### 8 How to get an Australian credit licence—streamlined process for particular classes of applicants (1) For section 39 of the Act, if an applicant is: (a) in the class of applicants mentioned in subregulation (2); and (b) is applying for a licence to engage in credit activities of the kind in which the person is authorised to engage under a law of a State or Territory; paragraph 37(1)(b) of the Act applies in relation to the applicant only to the extent that ASIC must consider whether it has reason to believe that the applicant is likely to contravene the obligations that will apply under paragraphs 47(1)(i) and (j) of the Act if the licence is granted. (2) The class of applicants is persons: (a) who have applied for an Australian credit licence; and (b) who are authorised to engage in credit activities under a law of a State or Territory; and (c) who, under the law of the State or Territory, or under a condition imposed on the person by a licensing authority under the law of the State or Territory: (i) are required to comply with the following requirements: (A) the person must comply with the law; (B) the person must have sufficient or adequate resources to ensure the person can comply with the law; (C) the person must be responsible for ensuring that all representatives of the person comply with the law; (D) the person must arrange or provide credit that is appropriate for consumers; (E) the person must act honestly and fairly in the person’s dealings with borrowers and lenders; (F) the person must ensure that the person and all representatives of the person are competent to engage in the credit activities the person is authorised to engage in; (G) if the person is acting as an agent on behalf of a consumer, the person must act in the best interests of the person’s principal; and (ii) are not required to be supervised by another person; and (d) who may be banned from engaging in credit activities under the law of the State or Territory; and (e) who have provided to ASIC a written statement in the approved form that the person will comply with the person’s obligations under the Act. (3) For section 39 of the Act, paragraph 37(1)(c) of the Act does not apply in relation to the class of applicants mentioned in subregulation (4) to the extent that the applicant is applying for a licence to engage in credit activities of the kind the person was authorised to engage in under a law of a State or Territory. (4) The class of applicants is persons who: (a) are in the class of applicants mentioned in subregulation (2); and (b) are authorised to engage in credit activities under a law of a State or Territory that: (i) requires the person to demonstrate that the person is a fit and proper person (however described); or (ii) deems the person to be ineligible to engage in credit activities if the person is not a fit and proper person (however described). (5) For section 39 of the Act, if an applicant is in the class of applicants mentioned in subregulation (7) or (8): (a) section 37 of the Act does not apply in relation to the applicant; and (b) if: (i) the applicant applies under section 36 of the Act for a licence; and (ii) the application includes a statement, in accordance with the requirements of the approved form, to the effect that the applicant will, if granted the licence, comply with the applicant’s obligations as a licensee; ASIC must grant the applicant a licence. (6) If ASIC grants the applicant a licence under subregulation (5), the licence must authorise the licensee to engage in credit activities that equate, as closely as possible, to the credit activities in relation to which the application was made. (7) The class of applicants is persons who: (a) are authorised as a general insurer by APRA under section 12 of the Insurance Act 1973; and (b) are included on the Register of General Insurers and Authorised NOHCs; and (c) offer lenders mortgage insurance products; and (d) engage in credit activities only: (i) as an assignee in relation to providing the mortgage insurance products; or (ii) as the credit provider under the doctrine of subrogation in relation to providing the mortgage insurance products. (8) The class of applicants is persons who: (a) are registered by APRA under section 21 of the Life Insurance Act 1995; and (b) engage in credit activities in relation to the provision of credit only because of the operation of the terms and conditions of: (i) a life policy (within the same meaning as in that Act) that was entered into before 1 July 2010 by the person; or (ii) a document issued or given by the person in relation to a life policy (within the same meaning as in that Act) that was entered into before 1 July 2010 by the person.