ASIC Form COI4 Sets Annual Compliance Certificate Requirements for Unlicensed Carried Over Instrumen

Key Takeaways

• ASIC's Form COI4 requires unlicensed carried over instrument (COI) lenders to lodge an annual compliance certificate by 15 August each year.
• The certificate covers business activity data, oversight personnel, risk status, general conduct obligations, and dispute resolution outcomes.
• Compliance teams should note that the form is dated 31 October 2018 (guide dated 21 November 2014), even though the update is listed as 2026-09-16, so they should confirm whether the content has changed.

Deep Dive

ASIC's Form COI4 requires unlicensed carried over instrument (COI) lenders to lodge an annual compliance certificate by 15 August each year. The certificate covers business activity data, oversight personnel, risk status, general conduct obligations, and dispute resolution outcomes. Compliance teams should note that the form is dated 31 October 2018 (guide dated 21 November 2014), even though the update is listed as 2026-09-16, so they should confirm whether the content has changed.

The form requires several categories of disclosure. Lenders must report the number of instruments under which they may still collect debt, the total amount owed, the estimated finalization date of the longest-running instrument, and the number of collection representatives. They must also list all people involved in oversight (directors, secretaries, partners, or trustees), including departures, name changes, and new appointments, with a full list as at 30 June. A risk status section requires certification that none of these individuals is subject to banning or disqualification orders, serious fraud convictions, insolvency, incapacity, or licence suspensions or cancellations. A "No" answer to any item makes the lender a prescribed unlicensed COI lender. It must then engage in credit activities only through an Australian credit licensee and must lodge Form COI2, while the appointed licensee lodges Form COI3.

The form also requires certification of ongoing compliance with the general conduct obligations in modified s47(1). These cover efficient, honest, and fair conduct, conflicts of interest, competence, training, internal dispute resolution (IDR) under CO 10/517, risk management, resources, and documented compliance systems. Lenders must disclose external dispute resolution (EDR) membership (including AFCA). Those outside an EDR scheme must report significant contraventions to ASIC within 10 business days of becoming aware of them. Lenders must also report complaint volumes, hardship applications under s72 and postponement requests under s94 of the National Credit Code, dispute outcomes and average resolution times, concessions such as reductions in amounts owed or fee waivers, and any proactive compensation programs. The CEO, or another authorized signatory as set out in the guide, signs the declaration. ASIC may verify the information and may request national police checks roughly every five years.

Recommended actions: (1) Calendar the 15 August deadline and run data collection as at 30 June. (2) Reconcile Australian Credit Register details and file Form COI2 for any discrepancies. (3) Perform fit-and-proper checks on all oversight persons and maintain evidence supporting the risk status certification. (4) Test IDR, complaints, hardship, and postponement registers for completeness and accuracy. (5) Document the basis for each conduct-obligation certification, since the certification rests on appropriate inquiries by the signatory. (6) Confirm the current form version on ASIC's website before lodging.

Risk implications: inaccurate or late certification exposes the lender and its signatory to regulatory action, including ASIC verification. An unrecognized prescribed status could result in unauthorized credit activity. Weak complaints and hardship data create consumer harm and conduct risk. Legacy COI portfolios may receive less management attention, which raises the likelihood of control gaps.

Source: Australian Securities and Investments Commission