What is the difference between an ACL and AFSL?

What is the difference between an ACL and AFSL?

Australian Credit Licence (ACL): An ACL is a licence issued by the Australian Securities and Investments Commission (ASIC) that authorises a business to provide credit services. An ACL allows a business to offer services such as:

• Providing credit to consumers
• Arranging credit for consumers
• Providing credit assistance
• Providing credit advice
• Operating a loan or finance company
• Operating a mortgage broking business
• Providing a guarantee of a consumer’s obligations
• Assisting a consumer to apply for credit
• Assisting a consumer to negotiate the terms of a credit contract
• Assisting a consumer to manage their credit
• Assisting a consumer to obtain credit
• Assisting a consumer to obtain a loan
• Providing a consumer with a credit report.

Australian Financial Services Licence (AFSL): An AFSL is a licence issued by ASIC that authorises a business to provide financial services. An AFSL allows a business to offer services such as:

• Providing financial product advice
• Dealing in a financial product
• Making a market for a financial product
• Operating a registered managed investment scheme
• Operating a superannuation fund
• Operating a custodial or depository service
• Providing a financial service
• Providing a superannuation service
• Providing a custodial or depository service
• Providing a foreign exchange service
• Providing a margin lending service
• Providing a clearing and settlement facility.

Difference between an ACL and AFSL: The main difference between an ACL and an AFSL is that an ACL authorises a business to provide credit services, while an AFSL authorises a business to provide financial services. An ACL allows a business to provide services related to credit such as arranging credit, providing credit advice, and assisting with credit applications, while an AFSL allows a business to provide services related to financial products such as dealing in financial products, providing financial product advice, and operating a managed investment scheme.