Signing client declarations for loans
Content Summary
The provision of an accountant's letter or capacity to repay certificate are restricted activities for holders of an Australian credit licence (ACL) under the National Consumer Credit Protection Act 2009 (National Credit Act) or individuals authorised to provide consumer credit advice under an ACL.
Under the Act, signing a capacity to repay certificate or providing similar declarations may be a breach if you are not appropriately licensed.
If an accountant provides a declaration that a loan or lease is predominately for business purposes is, as far as CPA Australia can determine, this isn’t restricted by the National Credit Act.
However, an incorrect declaration may be deemed to be a false and therefore have legal ramifications that may affect your professional indemnity insurance.
CPA Australia therefore recommends that you don’t provide such declarations.
Guides
This document provides guidance on accountant's letters, what assistance an unlicensed accountant can provide in the lending process and what activities are exempt under the National Credit Act.
This document provides guidance about the activities covered by the National Credit Act, and what services can be provided to a consumer without holding an Australian credit licence or being licensed as a credit representative.
Discover more
The trouble with sophisticated investors
The low bar for sophisticated investors is proving risky, but there’s a fix in the Corporations Act.
- Financial planning
article·Published onAccountant's letters
Accountant’s letters, declarations and capacity to repay certificates
- Financial planning
Education requirements for existing financial advisers
Information for existing financial advisers regarding education pathways
- Financial planning
Become a financial adviser
Discover the education and experience requirements and ethical obligations for financial advisers
- Financial planning
Regulations for financial planning
Regulation of SMSF advice, regulation of consumer credit and regulation of tax (financial) advisers
- Financial planning
Financial planning guides and calculators
Guidance notes, guides and calculators for financial advisers
- Financial planning