Compliance Checklist

This NCCP Licensing Compliance Checklist provides a high level overview of what “credit assistance” (broker) Licensees must have in place to comply with the NCCP Act.  While the Checklist is reasonably comprehensive, it is generic so Licensees should use it only as a guide in developing their own compliance framework and operating procedures.  

1.         BROAD COMPLIANCE OBLIGATIONS

Credit Licensees must:

• Do all things necessary to ensure that you engage in credit activities efficiently, honestly and fairly;
• Comply with the credit legislation; and
• Comply with the conditions of your credit licence.

2.         RISK & COMPLIANCE FRAMEWORK

The Checklist summarises the documented policies and procedures the business has in place to manage its NCCP obligations.  Its purpose is to provide a short overview of what is required and when and is not a substitute for a properly documented risk and compliance program.

Your compliance plan must:

• Clarify the obligations that apply to your business
• Identify who, within the business, is responsible for monitoring compliance with those obligations
• Detail what steps will be taken to monitor compliance (and how often it will be done)
• Provide a record of what has been done (to allow future periodic review of procedures and performance)

 ASIC has indicated the adequacy of your compliance plan will be dependent upon the nature, size and complexity of your business.

3.         PENALTIES

There are heavy penalties for non-compliance and unlicensed trading, including fines and gaol terms of up to 2 years for those who breach particular aspects of the NCCP regime (e.g. responsible lending obligations).

If you require further information, please consult your lawyer or the ASIC website: www.asic.gov.au/credit