Document ID: chunk:federal_register_of_legislation:C2024C00826:section:47:p1
Version: federal_register_of_legislation:C2024C00826
Segment Type: section
Provision Reference: s 47 (pt 1/3)
Character Range: 129983–132911

47  General conduct obligations of licensees

General conduct obligations
 (1) A licensee must:
 (a) do all things necessary to ensure that the credit activities authorised by the licence are engaged in efficiently, honestly and fairly; and
 (b) have in place adequate arrangements to ensure that clients of the licensee are not disadvantaged by any conflict of interest that may arise wholly or partly in relation to credit activities engaged in by the licensee or its representatives; and
 (c) comply with the conditions on the licence; and
 (d) comply with the credit legislation; and
 (e) take reasonable steps to ensure that its representatives comply with the credit legislation; and
 (ea) comply with the Reference Checking and Information Sharing Protocol; and
 (f) maintain the competence to engage in the credit activities authorised by the licence; and
 (g) ensure that its representatives are adequately trained, and are competent, to engage in the credit activities authorised by the licence; and
 (h) have an internal dispute resolution procedure that:
 (i) complies with standards and requirements made or approved by ASIC in accordance with the regulations; and
 (ii) covers disputes in relation to the credit activities engaged in by the licensee or its representatives; and
 (ha) give to ASIC the same information it would be required to give under subparagraph 912A(1)(g)(ii) of the Corporations Act 2001 if it were a financial services licensee; and
 (i) be a member of the AFCA scheme; and
 (j) have compensation arrangements in accordance with section 48; and
 (k) have adequate arrangements and systems to ensure compliance with its obligations under this section, and a written plan that documents those arrangements and systems; and
 (l) unless the licensee is a body regulated by APRA:
 (i) have available adequate resources (including financial, technological and human resources) to engage in the credit activities authorised by the licence and to carry out supervisory arrangements; and
 (ii) have adequate risk management systems; and
 (m) comply with any other obligations that are prescribed by the regulations.

Assessment of whether compliance is adequate
 (2) For the purposes of paragraphs (1)(b), (g), (k) and (l), in considering whether a matter is adequate, the nature, scale and complexity of the credit activities engaged in by the licensee must be taken into account.

Regulations in relation to internal dispute resolution procedures
 (3) Regulations made for the purposes of paragraph (1)(h) may also deal with the variation or revocation of:
 (a) standards or requirements made by ASIC; or
 (b) approvals given by ASIC.

Reference Checking and Information Sharing Protocol
 (3A) ASIC may, by legislative instrument, determine a protocol for sharing and requesting information about an individual in respect of whom there are reasonable grounds to suspect that:
 (a) if the individual