The latest ASIC report on relief decisions gives an indication of the way ASIC approaches relief applications.

It sets out its refusals to grant relief from:

• the requirement to hold a credit licence to a lenders’ mortgage insurer, in relation to its recovery activities arising from its lenders’ mortgage insurance (LMI) business.
• the requirement to hold a credit licence to a service provider of the mortgage industry. The services being provided were typical ‘back office’ activities, under an outsourcing arrangement, with limited customer contact, and no discretion to change information or content.
• compensation arrangements required in order to progress a credit licence application
• the requirements for exemption as an entity from being deemed a ‘prescribed unlicensed carried over instrument lender’
• a request to take a no-action position to allow a legal practice to refer clients to a particular credit provider

ASIC discloses that it took a no action position in relation to an entity that engaged in credit activities while unregistered or unlicensed by referring consumers seeking insurance premium funding to a premium funder via its website.

ASIC granted

• conditional relief to exempt seven life insurance companies from the responsible lending requirements of the National Credit Act for loans on policies provided to life insurance policy holders.
• an exclusion under s6(14) of the National Credit Code to premium funders so that premium funding loans that meet certain restrictions are not a provision of credit to which the National Credit Code applies.
• relief to modify s67 of the National Credit Act to reinstate the authorisation of credit representatives, where authorisation had lapsed due to the operation of reg 25A of the National Consumer Credit Protection Regulations 2010 (National Credit Regulations).