Australian Franchises

ASIC releases overview of credit disclosure obligations

Written on the 16 September 2011 by ASIC

ASIC releases overview of credit disclosure obligations

The Australian Franchises Directory has been informed that the Australian Securities & Investments Commission - ASIC - has released Information Sheet 146 Responsible lending disclosure obligations: Overview for credit licensees and representatives to assist industry understand their new credit disclosure obligations. 

The information sheet sets out the credit disclosure obligations under Chapter 3 of the National Consumer Credit Protection Act 2009 (National Credit Act) and related regulations.

The credit disclosure obligations commence on 2 October 2011.

How does this concern the Australian Franchise Industry and who do these changes apply to?


These obligations apply to most holders of Australian credit licences (credit licensees) and
credit representatives. This includes:

  • Credit providers and lessors, including assignees

  • Credit assistance providers, like mortgage and finance brokers, but also including:


- Product designers



- Mortgage managers, and



- Franchisees


  • Credit representatives, including some franchisees, and

  • Debt collectors.

A franchisee can engage in credit activities either as a credit representative of its franchisor
or under its own licence.
You may also be involved in meeting the disclosure obligations as the agent of another
person (e.g. a credit representative may provide a quote on behalf of a credit licensee).
Some of these obligations also apply to exempt special purpose funding entities that do not
hold a credit licence. An exempt special purpose funding entity is a type of credit funding
entity that is established to raise or receive funds from investors and act either as a credit
provider or lessor (including by way of legal assignment of rights), and that is exempt from
holding a credit licence in certain circumstances: reg 3 of the National Credit Regulations.
A special purpose funding entity is defined in item 3.4, Sch 3, National Credit Regulations.


A full copy of the information sheet is available here

For more information about the consumer credit regime, please see the credit pages at General enquiries should be directed to ASIC's Infoline on 1300 300 630.





This article features information provided by the ASIC & has been republished by Australian Franchises Directory for public interest.

Please Note: Whilst all due care will be taken by Australian Franchises to provide & maintain the most current versions of the ASIC publications & the accuracy of the links contained on this page, Australian Franchises advises all visitors to verify the details by visiting the ASIC website directly. For ASIC information please click here


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