ACL Application (Form CL01)
Content brief for the Australian Credit Licence application to be lodged by Life Without Debt Ltd in Year 2 of operation. Prepared to align with the National Consumer Credit Protection Act 2009 (Cth) (NCCP Act), ASIC Regulatory Guide 204 Applying for and varying a credit licence, and ASIC Regulatory Guide 205 Credit licensing: General conduct obligations.
ACL applicants must demonstrate to ASIC that they have (i) competent responsible managers with knowledge and skill (RG 206), (ii) adequate resources and technology, (iii) established compliance and risk systems, (iv) a functioning dispute-resolution scheme (AFCA membership), and (v) adequate professional indemnity insurance. It is difficult to meet these thresholds credibly in the first months of operation. The recommended sequence is: Year 1 — operate under the ACNC "credit assistance related to debt" activities that fall within the charitable-purpose limbs and do not trigger licensing (e.g. general financial information; referrals to unrelated licensed debt-management providers); build operational track record; then lodge Form CL01 in Q1 or Q2 of Year 2 when responsible-manager evidence and 12 months of operational data are available.
Under s.6 of the National Credit Code (Schedule 1 to the NCCP Act), a person who engages in a "credit activity" (which includes providing "credit assistance" or acting as an "intermediary" in relation to a consumer credit contract) generally requires an ACL under s.29 of the NCCP Act. Life Without Debt Ltd's debt-negotiation service (contacting a beneficiary's creditors, negotiating hardship variations, restructures, waivers or settlements of consumer credit contracts) is likely to constitute "credit assistance" or activity as an "intermediary" and therefore requires either an ACL, a credit representative authorisation under an existing ACL, or an exemption. See sections 8, 15 and 16 of the NCCP Act and ASIC RG 205 for the current position on debt-management-firm licensing (as revised in 2021 to require ACL authorisation).
Form CL01 Field Mapping
| CL01 Field | Content |
|---|---|
| 1. Applicant details | Life Without Debt Ltd — ACN [ACN] — ABN [ABN] — registered as a charity by the ACNC on [date] — endorsed as a DGR (item 4.1.1 PBI) on [date]. Public company limited by guarantee. |
| 2. Business address | Registered office: [address]. Principal place of business: [address]. |
| 3. Contact person | Chief Compliance Officer — [name, title, direct phone, email]. |
| 4. Nature of business | Charitable Public Benevolent Institution providing debt-negotiation and related financial-relief services to terminally ill Australians and their families, without charging fees to beneficiaries. |
| 5. Credit activities sought |
(a) Providing credit assistance to consumers within the meaning of s.8 NCCP Act — specifically, suggesting or assisting consumers to apply for hardship variations, restructures, refinances, waivers, forbearance or settlements of existing consumer credit contracts; (b) Acting as an intermediary within the meaning of s.9 NCCP Act — communicating with credit providers on behalf of the consumer to negotiate the above outcomes. The Company does not seek authorisation to provide credit, to enter into consumer credit contracts as a credit provider, to act as a lessor or mortgagee, or to provide credit services other than as described above. |
| 6. Consumer categories | Retail consumers only. Business/commercial credit is not within scope. |
| 7. Responsible managers | The Company nominates [at least two individuals — recommend the Head of Debt Negotiations and a Director with credit-industry experience] as Responsible Managers. Evidence provided per RG 206:
|
| 8. Fit and proper — key persons | Directors, senior managers, Responsible Managers, and any person who controls the Company: national police check, bankruptcy check, AFP background check, ASIC banned-and-disqualified register check — attached as Annexures. |
| 9. Financial resources | ASIC RG 207 minimum financial requirements: net tangible assets (NTA) requirement of the greater of $50,000 or 10% of average annual revenue, plus 12-week cash-flow projection. Financial statements for the preceding financial year attached (ACNC AIS 2023-24 / 2024-25 as applicable). |
| 10. External dispute resolution | Membership of the Australian Financial Complaints Authority (AFCA) — membership number [to be obtained before lodgement]. |
| 11. Internal dispute resolution | The Company's Internal Dispute Resolution (IDR) procedure complies with ASIC RG 271. See section 5 of the Compliance Plan (Attachment I). |
| 12. Professional indemnity insurance | PI cover of $[at least 2 million per claim and in aggregate — sized in accordance with RG 210], from an APRA-regulated insurer, covering all credit activities and fraud by employees. Policy schedule attached. |
| 13. Compliance arrangements | The Compliance Plan (Attachment I) sets out the arrangements addressing each of the general conduct obligations in s.47(1) of the NCCP Act. |
| 14. Business description | Attached as Annexure A — describes the beneficiary intake process, the debt-negotiation methodology, no-fee model, safeguards for vulnerable consumers, and the Company's charitable purpose. |
| 15. Declaration and lodgement fee | Signed declaration by two Directors under s.127 of the Corporations Act. Fee: refer to current ASIC schedule (varies by number of Responsible Managers). |
Attachments Checklist
- Annexure A — Business description
- Annexure B — Organisational chart showing reporting lines to Responsible Managers
- Annexure C — Compliance Plan (see separate document compliance-plan.html)
- Annexure D — Responsible Manager qualifications, experience statements and reference checks (per person)
- Annexure E — Fit-and-proper evidence for each key person (police, bankruptcy, ASIC banned register)
- Annexure F — Audited financial statements for the preceding financial year
- Annexure G — 12-week rolling cash-flow forecast
- Annexure H — AFCA membership confirmation
- Annexure I — Professional indemnity insurance policy schedule
- Annexure J — IDR procedure aligned with RG 271
- Annexure K — Risk management framework
- Annexure L — Conflicts of interest policy (same policy as ACNC Attachment D)
This is a content brief only. Before lodging Form CL01, the Company must obtain (a) advice from an Australian financial-services lawyer with credit-licensing expertise on the precise categories of "credit activities" being sought; (b) an independent compliance review of the Compliance Plan against RG 205 and RG 271; and (c) written confirmation from AFCA of the Company's eligibility and membership terms. The choice between an ACL and operating via a credit representative authorisation under an existing licensee should also be reconsidered at that time.