No. ASIC’s licensing framework does not permit an Australian Credit Licensee (ACL holder) to provide financial product advice solely because it holds an ACL. Financial product advice requires an Australian Financial Services Licence (AFSL) or a valid authorisation from an AFS licensee when the advice relates to financial products regulated under the Corporations Act.
Expanded Answer
An ACL authorises a business to engage in regulated credit activities under the National Consumer Credit Protection Act. It does not authorise the business to provide financial services regulated under the Corporations Act. Financial product advice includes recommendations or statements of opinion about financial products, such as investments, superannuation, securities or most insurance products, where the advice is intended to influence a person’s decision.
A business that wishes to provide both regulated credit activities and financial product advice must hold the appropriate licences or operate under the relevant authorisations. Some activities may involve both licensing regimes. For example, a business may hold an ACL for mortgage broking while also holding an AFSL to provide financial product advice about investment or superannuation products. The licensing requirement depends on the nature of each regulated activity, not the business itself.
Applies when: the business provides advice about financial products regulated under the Corporations Act.
Not required when: the business provides only regulated credit activities within the scope of its ACL and does not provide financial product advice.
Why it matters
Providing financial product advice without the required AFSL or authorisation may expose a business to significant regulatory action, client remediation obligations and civil or criminal penalties. Correctly distinguishing credit activities from financial services is a fundamental licensing obligation.
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Practical guidance
- Identify whether each service constitutes a regulated credit activity or financial product advice before offering it.
- Confirm the business holds the appropriate licence or authorisation for every regulated activity undertaken.
- Review new products and service offerings against both the ACL and AFSL licensing frameworks before launch.
Further reading
ACL vs AFSL: Which licence do you need?
What is an Australian Credit Licence? A practical guide for credit businesses
What are the requirements for an AFSL? A practical guide for prospective licensees