Licensing: Administrative action against persons engaging in credit activities

Description

Enhance your understanding of ASIC’s administrative action against persons engaging in credit activities.

Regulatory Guide 218 (RG 218) outlines the administrative powers of the Australian Securities and Investments Commission (ASIC) to take action against individuals and organisations engaged in credit activities. This regulation is a cornerstone of ASIC’s role in upholding the National Consumer Credit Protection Act 2009 (NCCP Act), ensuring a fair, transparent, and compliant credit market.

ASIC’s administrative actions are initiated when credit licensees or their representatives:

• Fail to meet obligations under the NCCP Act, such as providing responsible lending practices.
• Engage in misleading or deceptive conduct.
• Demonstrate poor compliance histories or pose ongoing risks to consumers.
• Breach conditions of their credit licence or relevant regulations.

The consequences of non-compliance can be severe, both for businesses and individuals:

• Loss of consumer trust: Clients may lose confidence in organisations facing administrative actions, leading to long-term revenue loss.
• Reputational damage: Regulatory actions often lead to public announcements, tarnishing the organisation’s credibility.
• Operational disruptions: Licence suspensions or bans can halt business operations, impacting profitability and client relationships.
• Legal and financial penalties: Non-compliance may attract hefty fines, legal proceedings, and additional regulatory scrutiny.

Who Should Take This Course?

This course is ideal for:

• Individuals aiming to master ASIC’s regulatory landscape
• Credit licensees and representatives
• Compliance officers in credit-related businesses
• Professionals working in the financial or legal sectors

Estimated Time To Complete

Learning Outcomes

By the end of this course, you will be able to