How should the licensing and preparation requirements for this business be confirmed?
As a provider, select ACL authorisation that matches the credit provider activity, and verify the definitions of BNPL and LCCC product by product. BNPL and LCCC are not synonymous; those who do not meet the fee eligibility criteria cannot automatically use modified responsible lending. Merchant referrals, platform credit assistance, payment arrangements and financing contracts must be classified separately, and ACL does not replace any AFSL payment product authorisation that may be required.RG281
RGYS provides support with organising materials, assessing pathways and coordinating with professionals; we are not a licensing or approval authority. Approval, registration status and operating restrictions are subject to official decisions and the actual licence.
Business scope and applicable boundaries
As a provider, select ACL authorisation that matches the credit provider activity, and verify the definitions of BNPL and LCCC product by product. BNPL and LCCC are not synonymous; those who do not meet the fee eligibility criteria cannot automatically use modified responsible lending. Merchant referrals, platform credit assistance, payment arrangements and financing contracts must be classified separately, and ACL does not replace any AFSL payment product authorisation that may be required.RG281
Application eligibility and required information
Prepare an explanation of the product and merchant fund flows, the definition of LCCC and the reg69G fee test, a system for aggregating amounts across contracts, written election and contract statements, an unsuitability assessment policy, financial inquiry/verification and credit-check procedures, credit limit increases, electronic disclosure, financial hardship, complaints and policies for existing contracts. The presumptions relating to amounts below 2000 Australian dollars are rebuttable and do not mean that financial checks are unnecessary. The general non-default fees are AUD 200 for the initial period and AUD 125 for subsequent periods, and the general default fee is AUD 120; there is also an exception where all contracts charge only default fees, at AUD 320/245. All amounts are aggregated over 12 months for the same consumer and provider. If the platform also conducts activities such as third-party broking, reassess PI; it is not automatically exempt as a pure lender.Current reg69G
Requirements for shareholders, directors and compliance personnel
Conduct fitness and propriety checks on shareholder controllers, directors and relevant senior personnel. The responsible manager should also understand consumer credit, BNPL products, automated credit decisions, credit limit increases and fee rules, and should generally meet RG206’s requirement for two years of relevant and current experience and a relevant industry or higher qualification. A software development résumé alone cannot replace credit management experience. The platform should assign accountable persons for model and credit decisions, product compliance, financial resources, merchant oversight, customer hardship and complaints; the licensee retains ultimate responsibility for automated decisions.
Capital and financial resource requirements
Ordinary BNPL/LCCC ACL has no uniform minimum paid-up share capital or fixed NTA. Requirements must be assessed against RG207, covering at least the next 12 months of merchant settlements, credit advances, customer repayments, chargebacks and fraud, bad debts, payment and system costs, and complaints and compensation. The A$2,000 threshold and fee caps are not licence capital requirements. Financing facilities should demonstrate availability and covenant risks; the PI exception for conducting only one's own lending must be confirmed against the actual authorisation and conditions.
Registered address and actual operating arrangements
An Australian company must provide a physical registered office and a genuine business address. A digital platform should specify the locations of its credit decision-making team, customer service, records control and systems suppliers. Overseas technology outsourcing must clearly address data access, regulatory access to records, permissions, contingency arrangements and protection of customer information; an overseas server or Australian mailing address cannot substitute for an accurate account of actual management and operations.
Application and business preparation process
- For each product, complete an BNPL/LCCC classification and fee-eligibility opinion, and review legacy contracts, merchants and funds flows.
- Put in place the provider applicant entity, control chain, responsible credit manager and key platform personnel.
- Choose standard or qualified LCCC adjustments for lending, and complete the written selection, contract declarations and assessment policy.
- Test cross-contract charges, credit checks, credit limit increases, merchant settlements, customers experiencing hardship and electronic disclosure systems.
- Implement resources, AFCA and indemnity arrangements; apply through the ASIC portal and provide evidence and supplementary documents as required.
- Commence operations only after obtaining the appropriate authorisation; the 2025 transitional arrangements apply only to those meeting the conditions at the time and are not a basis for unlicensed operations by new projects in 2026.
Time required and review uncertainty
2025-06-10 is the commencement date of the implemented regime, not an application processing timeframe. The general ASIC processing targets are to decide 70% within 150 days and 90% within 240 days; commercial preparation of a complex BNPL platform through to launch may be planned for 6–12 months or longer, including remediation of data and fee systems. Existing transitional applications must be dealt with according to their own legal status; submission does not guarantee continued operation.
Changes to shareholders or directors, acquisitions and transfers
An acquisition should focus on checking application and licence status since 2025, eligibility for product LCCC, written selection, fees across contracts, complaints about old contracts, credit-limit increases, and merchant and financing data. A change of control must be notified under reg9 within 10 business days after the change. Obtain appropriate authorisation before adding broking or debt management. Changing product fees may mean the contract no longer qualifies under LCCC; reassess the obligations first, and do not unconditionally rely on the seller’s compliance conclusions.
Ongoing compliance, renewal and maintenance
Within 45 days after the CL50 anniversary; ongoing verification of cumulative fees, credit reporting/financial enquiries, rebuttal of presumptions, credit limit increases, algorithms and merchant arrangements. Maintain unsuitability policies, selection and revocation records, and processes for customers in hardship and IDR/AFCA. Managers: 20 hours of annual CPD. Monitor financing, bad debts, fraud and cyber security; address material non-compliance, customer remediation and reportable situations under the current regime.
Frequently Asked Questions
Is ACL the same as AFSL, and can holding one allow you to operate the other type of business?
No. ACL covers specified credit activities under the National Consumer Credit regime, while AFSL covers financial services activities under the Corporations Act. Consumer lending or specific loan assistance must be assessed separately from securities, funds, insurance, foreign exchange, margin lending and similar activities. Holding both licences does not remove the need to meet the competence, financial and compliance requirements for each.ASIC INFO101
What are the minimum share capital and net tangible assets for an ordinary ACL?
RG207 does not prescribe a uniform minimum paid-up share capital or fixed NTA amount for ordinary ACL holders not regulated by APRA. Sufficient resources to pay debts as they fall due and cover business, supervision and exit costs should be demonstrated, taking into account information for at least the next 12 months. Share capital, NTA, cash flow, loan funds and PI cover must be assessed separately; individual conditions and other regulatory statuses apply separately.RG207
Must we have two Australian responsible managers?
No uniform requirement for two managers at an ordinary ACL has been verified. RG206 assesses the number based on scope, scale and complexity; a small business may have one person genuinely responsible for day-to-day credit decisions, while a larger business may need several people to provide coverage. A Pty Ltd must have at least one director ordinarily resident in Australia under company law; this is not the same rule as the number of responsible managers for ACL.RG206
Can a responsible manager apply with only a university degree?
Usually, qualifications alone are not sufficient. RG206 minimum expectations combine at least two years of relevant and effective experience with a relevant Certificate IV or higher qualification; the responsible manager for third-party home loan assistance should hold at least a Certificate IV in Finance and Mortgage Broking. The person must genuinely manage the business and have the time and authority to do so; their name cannot simply be borrowed, and experience gained through unlawful unlicensed operations cannot be counted.RG206
Do all lending companies have to buy AUD 2 million PI insurance?
No. A firm engaged solely in lending or leasing its own funds, and meeting the specific definition in reg 12 and the actual licensing conditions, may qualify for the PI exception, but must still have appropriate indemnity arrangements. Third-party brokers generally need PI or an alternative arrangement approved by ASIC; RG210 minimum expected insurance cover of AUD 2 million for each claim and in aggregate is not capital. Revenue, representatives and risk may require higher cover.RG210
Must AFCA be completed before submitting the ACL application?
ASIC's current page permits an application to be lodged before becoming an AFCA member, but membership in the credit licensee category is required before the licence is granted. Applicants should still arrange membership early and prepare an internal complaints process and ongoing membership maintenance. Lodging an AFCA application does not establish that all licensing conditions have been met.ASIC application steps
BNPL Is an ACL still required if no interest is charged to consumers?
Statutory BNPL entered the national consumer credit regime from 10 June 2025; zero interest or merchant-funded fees are not general grounds for exemption from licensing. LCCC may, subject to conditions, opt for modified responsible lending, but financial inquiries, verification and assessments of unsuitability still apply. The 2025 transitional arrangements are not a general basis for new applicants to operate without a licence in 2026.ASIC BNPL licence
BNPL Is AUD 2,000 a minimum capital amount or a threshold below which income checks are always exempt?
Neither. The AUD 2,000 in RG281 relates to specific assessment and credit reporting steps; the presumption for a small target amount may also be rebutted and does not replace an assessment of financial circumstances. The fee cap in LCCC is separately aggregated over a 12-month period for the same consumer and provider; it is not an equity capital requirement or a fixed limit for a single loan.RG281
After buying shares in a company holding ACL, is it only necessary to notify ASIC within 30 working days?
ACL should not apply AFSL’s 30-business-day rule. Current reg 9(10) requires details of a change of control to be submitted in the approved form when the change becomes known, no later than 10 business days after it occurs. Control is not limited to a majority shareholding; it also includes control of the board and of substantive business policies. An acquisition also requires checks on fitness and propriety, managers, resources and authorisations. Notification does not constitute ASIC’s approval of the transaction or new business.Current Credit Regulations
Can the seller's ACL be used after acquiring a loan portfolio?
It cannot be used automatically. ACL belongs to the licensed legal entity, and a transaction involving assets or a loan portfolio does not transfer the licence to the buyer. The transferee must verify its own licence or applicable exemption, contractual rights and arrangements for the original assessment materials; acquiring pre-2010 contracts now does not automatically confer the original lender’s COI lender status.RG207
Does an all credit activities authorisation include fee-charging debt management?
ASIC's current authorisation guidance expressly states that all credit activities do not include debt management services, which are listed separately. Fee-charging assistance with debt or credit reporting issues requires separate verification of the activities, authorisation and exemptions involved; it cannot be summarised solely by reference to a broking authorisation or an all-activities category.ASIC authorisation FAQ
ASIC How many months can approval be guaranteed in?
No. The 150-day/240-day figures are public processing targets for 70%/90% of applications respectively, not commitments for an individual case. Commercial preparation also involves personnel, background evidence, AFCA, funds, systems and further information requests. The 4–9 or 6–12 month ranges in this guide are non-official project-budget estimates only; the actual period may be longer, and a fixed approval promise should not be sold.ASIC REP825
Can an accountant's office or a PO Box be used as a registered address?
An Australian company may use a third party’s physical Australian street address, such as an accountant’s, as its registered office, but the occupier’s written consent is required; a PO Box cannot be used. The principal place of business must be genuine and cannot be a post office box, while the mailing address may be a PO Box. Address compliance does not mean that ACL’s requirements for actual personnel, systems and supervisory capacity have been met.ASIC Company address
After approval, is an annual renewal fee all that is required?
No. CL50 must be lodged within 45 days after the licence anniversary. The licensee must also maintain financial resources, staff competence, CPD, AFCA/compensation arrangements, client and representative supervision, and IDR data and reporting obligations. A certificate lodged electronically on time may have no lodgement fee, but this does not remove industry levies or other operating costs; ceasing to take on new business does not automatically remove obligations to existing clients.CL50
Does the 2026 small business exception exempt all business-related consumer loans from ACL?
No. The amendments commencing on 5 September 2026 only extend the end date of the exception period specified in reg 28RB to the beginning of 3 October 2036, in relation to specified responsible lending obligations for loans that meet the genuine and non-minor/incidental small business purpose test. The borrower, purpose and each applicable condition must still be verified; this cannot be expanded into an exemption from all ACL licensing, disclosure or complaints obligations.Revised text
Official sources and verification notes
Information verified: 5 November 2026. Business classifications do not replace legal definitions; use the latest versions of official webpages and legislation where they are updated.
- ASIC: Credit licensees (user-specified entry point; full text saved)
- ASIC：Check if you need a credit licence
- ASIC INFO101：FAQs Does the credit legislation apply
- ASIC：Apply for a credit licence
- ASIC: FAQs Getting a credit licence (authorisation types)
- ASIC：Providing information for fit and proper people
- ASIC RG206：Credit licensing Competence and training
- ASIC RG206 official full text, 2022 maintenance version
- ASIC RG207：Credit licensing Financial requirements
- ASIC RG207 official full text
- ASIC RG210: official full text of Compensation and insurance arrangements
- ASIC RG209：Credit licensing Responsible lending conduct
- ASIC RG273：Mortgage brokers Best interests duty
- ASIC 26-240MR: 2026 review of mortgage brokers' best interests duty
- ASIC：Consumer lease industry review following reforms
- ASIC：Buy now pay later credit contracts Credit licensing
- ASIC RG281：Low cost credit contracts
- ASIC RG281: final official full text dated 2025-05-08
- ASIC RG205: General conduct obligations, maintenance version 2026-03
- ASIC PF224：Australian credit licence standard conditions
- ASIC：Credit dispute resolution
- ASIC：Change your credit licence details or name
- ASIC：CL50 Australian credit licence annual compliance certificate
- ASIC: Reportable situations for AFS and credit licensees (current 60-day investigation threshold)
- ASIC REP825：2025 Licensing and professional registration activities
- ASIC: Fees for Australian credit licences and annual compliance certificates (do not cite old amounts as current fees)
- ASIC：Company addresses
- ASIC：Company officeholders Directors and secretaries
- ABRS：Director ID Who needs to apply and when
- Federal Register: current entry for the National Consumer Credit Protection Act 2009
- Federal Register: current series of the National Consumer Credit Protection Regulations 2010
- Federal Register: full authorised text of the current credit regulations F2026C00861, compiled on 2026-09-05
- Federal Register: full text of the authorising instrument amending the 2026 Small Business Exemption
- AUSTRAC: Designated service name changes (names after the 2026 reforms)
- AUSTRAC：What to expect from the changes to the AML/CTF Rules
Notes on corrections to historical information in this guide
ACL and AFSL are separate regimes; margin lending, securities/funds/insurance and deposit-taking cannot be covered generally by ACL.
For an ordinary ACL not regulated by APRA, RG207 does not prescribe a uniform minimum share capital or a fixed NTA amount; AUD 2 million in PI insurance cover is not a capital requirement. Resource planning for the next 12 months also does not mean that 12 months’ expenses must be held in a separate account.
RG206 generally requires at least two years of relevant, effective experience and appropriate qualifications. It does not apply the AFSL competence pathways or unverified uniform thresholds requiring experience within the last five years or two Australian managers; the Australian-resident director requirement for a Pty Ltd is a separate company law requirement.
Current reg12 confirms that certain persons who only lend or lease their own funds may qualify for a PI exception, subject to authorisation and additional conditions, and must still provide appropriate compensation. Non-lending businesses such as brokers will generally need PI or an ASIC-approved alternative.
Under current reg9, an ACL change of control must be notified no later than 10 business days after the change, not within the 30 business days for AFSL; control is also not limited to a majority shareholding. A notice of share acquisition is not regulatory approval, and an asset transfer does not transfer ACL.
An all credit activities authorisation does not include debt management services; fee-charging debt management must be checked separately against the authorisation.
BNPL The reforms commenced on 2025-06-10; zero interest for consumers is not a general reason for exemption from licensing. The 2025 transitional arrangements do not apply to all new entrants in 2026. Written election of LCCC and the presumption related to AUD 2,000 do not exempt a provider from checking repayment capacity.
LCCC The fee cap is calculated on the aggregate contracts between the same consumer and provider over 12 months; in addition to 200/125 and the general default fee of 120 Australian dollars, the statutory exception of 320/245 Australian dollars must be preserved where all contracts charge only default fees.
ASIC The current reportable-situations page specifies a trigger of more than 60 days for relevant investigations; the usual reporting deadline is 30 calendar days. The former 30-day investigation threshold should not be applied, nor should the deadline be misstated as 30 business days.
The 2026-09-05 small business amendment is in force, but only extends the specified responsible lending exception in reg28RB to commencement on 2036-10-03. It is not an exemption from all ACL licensing obligations or advance application of future legislation that is not yet in force.
150 days/240 days are ASIC statistical processing targets, not fixed commitments to grant approval; 4–9 or 6–12 months are explicitly labelled commercial project budgets, not official timeframes or verified averages.
ASIC The historical amounts on the 2018 fees page INFO108 are not current fees for 2026; CL50 electronic lodgement on time without a lodgement fee does not mean there are no annual regulatory or operating costs.
A company may use a third-party physical address in Australia as its registered office with written consent, but cannot use a PO Box instead of a registered office or genuine principal place of business.
The 2026 AML/CTF reforms and some transition arrangements have been implemented. You cannot simply apply the old Part A/Part B template or treat the transition of existing entities' CDD as a general grace period for new entities.
Consumer leases and instalment sales are distinguished by substance; a proposed Centrepay policy that has not been separately verified should not be presented as an effective rule.
The user-specified ASIC credit licensee entry page has been extracted in full and saved. For some legislation pages, the text tool returned only titles, while some PDF returned encoded content; the current authorisation regulations and full RG were decoded and verified in memory via the actual download links on the same official pages; no browser was used.
The bylines Drew Tang (Mr Tang / Drew) and Rengangyongsheng (Hong Kong) Limited use only the identities specified by the user and do not fabricate ASIC certification, ACL licensing, legal qualifications or approved case studies.
YOUR CONSULTATION PARTNER
Drew Tang （Mr Tang / Drew）
Business Manager · Rengangyongsheng (Hong Kong) Limited
Speak with Mr TangThis article was prepared by Rengangyongsheng (Hong Kong) Limited, with business explanations provided by Drew Tang ( Mr Tang) Business Manager. It is general information and does not replace advice on an individual matter from an Australian lawyer, tax adviser or regulator.