9The conditions on the licence

#### 9 The conditions on the licence (1) For section 45 of the Act, an Australian credit licence is subject to the conditions set out in this regulation. (2) If: (a) there is a change in a matter particulars of which are entered in the credit register for licensees; and (b) the change is not a direct consequence of an act by ASIC; the licensee must lodge particulars of the change with ASIC, in the approved form, within 10 business days after the change occurs. (3) If: (a) there is a change in a matter particulars of which are entered in the credit register for credit representatives; and (b) the change is not required to be reported in accordance with section 71 of the Act; and (c) the change is not a direct consequence of an act by ASIC; the licensee must ensure that particulars of the change are lodged with ASIC in the approved form within 15 business days after the change occurs. (4) The licensee must ensure that each credit representative of the licensee that may give an authorisation to an individual is aware of the requirements in section 71 of the Act. (5) The licensee must ensure that, before the licensee authorises an individual to engage in a credit activity on its behalf as mentioned in section 64 of the Act, reasonable inquiries are made to establish: (a) the individual’s identity; and (b) whether the individual has already been allocated a number by ASIC as a credit representative. (6) The licensee must ensure that, before a body corporate that is a credit representative of the licensee authorises an individual to engage in a credit activity on behalf of the licensee as mentioned in section 65 of the Act, reasonable inquiries are made to establish: (a) the individual’s identity; and (b) whether the individual has already been allocated a number by ASIC as a credit representative. (7) The licensee must ensure that, if: (a) ASIC has allocated a number to a credit representative; and (b) the licensee, or a body corporate that has authorised an individual to engage in a credit activity on behalf of the licensee as mentioned in section 65 of the Act, lodges a document with ASIC that refers to the credit representative; the document refers to the number. (8) The licensee must provide evidence of an authorisation of any of its credit representatives: (a) on request by any person; and (b) free of charge; and (c) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which it received the request. (9) The licensee must take reasonable steps to ensure that each of its credit representatives supplies evidence of its authorisation by the licensee: (a) on request by any person; and (b) free of charge; and (c) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which the credit representative received the request. (10) If the licensee becomes aware of any change in control of the licensee, the licensee must lodge with ASIC particulars of the change, in the approved form, not later than 10 business days after the change. (11) For subregulation (10): (a) a change in control, in relation to a licensee, includes a transaction, or a series of transactions in a period of 12 months, that results in a person having control of the licensee, either alone or together with associates of the person; and (b) control, in relation to a licensee, means: (i) if the licensee is a body corporate: (A) the capacity to cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the licensee; or (B) directly or indirectly holding more than one half of the issued share capital of the licensee (not including any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or (ii) the capacity to control the composition of the licensee’s board or governing body; or (iii) the capacity to determine the outcome of decisions about the licensee’s financial and operating policies. (12) For subparagraph (11)(b)(iii), the following matters must be taken into account in determining whether a person has the capacity to determine the outcome of decisions about the licensee’s financial and operating policies: (a) the practical influence the person can exert (rather than the rights it can enforce); (b) any practice or pattern of behaviour affecting the licensee’s financial or operating policies (whether or not it involves a breach of an agreement or a breach of trust). (13) On the request of any person, the licensee must make available, within 10 business days, evidence of its Australian credit licence for inspection by that person. (14) If: (a) the licensee is not a body regulated by APRA; and (b) an event occurs that may make a material adverse change to the financial position of the licensee by comparison with its financial position: (i) at the time of the application for the Australian credit licence; or (ii) as described in documents lodged with ASIC after the application for the Australian credit licence; the licensee must lodge with ASIC in the approved form a notice setting out particulars of the event as soon as practicable, and in any case not later than 3 business days, after the licensee becomes aware of the event.