How Your Business Can Cancel Its Australian Credit Licence with ASIC

Introduction

Circumstances may arise where your business, as an Australian Credit Licence (ACL) holder, needs to cease operating under that licence. This could happen if your business stops engaging in credit activities or transitions to operating as a credit representative under a different licensee.

Navigating the cancellation process correctly with the Australian Securities and Investments Commission (ASIC) is essential to ensure compliance and avoid potential penalties. This guide outlines the necessary steps your business must take to formally request and finalise the cancellation of its ACL.

Reasons Your Business Might Need to Cancel Its ACL

Ceasing Credit Activities

Your business may need to cancel its ACL if it no longer engages in credit activities. This situation typically arises when your operations change and you completely stop providing services covered by the ACL.

In such cases, maintaining the licence becomes unnecessary. By requesting cancellation from ASIC, you ensure your regulatory status accurately reflects your current business functions.

Transitioning to a Credit Representative Role

Another common reason for cancellation occurs when your business plans to become a credit representative. This transition makes sense when:

• The credit activities you’ll engage in as a representative are the same as those authorised under your existing ACL;
• You’ll be operating under the authority of a different licensee.

In this scenario, your individual ACL becomes redundant for those specific activities, making cancellation an appropriate step.

The ASIC Licence Cancellation Application Process

Submitting the Cancellation Application via the ASIC Portal

If your business no longer requires its ACL, you must formally request its cancellation from ASIC. To initiate this process, you need to complete and lodge Form CL08, titled ‘Request to change licence status’ through the ASIC Credit registers portal.

This online submission is the official channel for requesting the cancellation of your licence, ensuring ASIC properly processes your application.

Identifying Authorised Signatories for the Application

It is crucial that the cancellation request document is signed by an appropriately authorised person from your entity. The specific individual permitted to sign depends on the structure of your business.

The authorised signatories for different entity types are as follows:

• Individual: The individual licensee must sign the application.
• Partnership: Any one of the individual partners is authorised to sign. If a partner is a body corporate, a director or secretary of that body corporate can sign.
• Multiple trustees of a trust: Any one of the trustees can sign the request. If a trustee is a body corporate, a director or secretary of that corporate trustee is authorised.
• Foreign company: A director, secretary, or the appointed local agent can sign the cancellation form.

For companies or other body corporates, a director or secretary is typically the authorised signatory. However, if the licensee is under external administration, the signatory requirements change depending on the specific circumstances:

• In liquidation: The appointed liquidator must sign the request.
• Under administration: The administrator is the required signatory.
• Deed of company arrangement: Generally, the administrator of the deed should sign.
• Receiver/receiver and manager appointed: The signatory could be the receiver/receiver and manager or a director/secretary, depending on the court order or instrument terms and the scope of the appointment. If the company is also in liquidation, the liquidator’s signature is required.

What Happens After Your Business Submits the Cancellation Application

After your business submits the request to cancel its ACL, ASIC will initiate a review process. This assessment ensures that the cancellation of your licence can proceed without any issues.

The process concludes with formal notification once ASIC completes its review. Your business will receive:

• A letter confirming the cancellation
• An official notice stating that the ACL cancellation is complete

What Happens After Your Business Submits the Cancellation Application

After your business submits the request to cancel its ACL, ASIC will initiate a review process. This assessment ensures that the cancellation of your licence can proceed without any issues.

The process concludes with formal notification once ASIC completes its review. Your business will receive:

• A letter confirming the cancellation
• An official notice stating that the ACL cancellation is complete

Conclusion

Cancelling your ACL requires following a specific process with ASIC, particularly when your business stops engaging in credit activities or transitions to operating as a credit representative. Adhering to the correct procedure, including submitting the required Form CL08 via the ASIC portal with appropriate authorisation, is crucial for compliance and formalising the cancellation.

Whether you’re cancelling an ACL or applying for an ACL, navigating these regulatory requirements demands careful attention to detail to ensure everything is handled correctly. For trusted expertise and support in managing your ACL cancellation efficiently, contact AFSL House today to leverage our specialised services tailored to your needs and achieve peace of mind.

Frequently Asked Questions About ACL Cancellation