The provision of an accountant's letter and capacity to repay certificate is now restricted to holders of an Australian credit licence under the National Consumer Credit Protection Act 2009 (National Credit Act).
Under this Act, the signing of a capacity to repay certificate or providing other similar declarations may be a breach if you are not appropriately licensed.
The provision of a declaration by an accountant that a loan or lease is predominately for business purposes is, as far as CPA Australia can determine, not restricted by the National Credit Act.
An incorrect declaration, however, may be deemed to be a false declaration and may have legal ramifications that affect your professional indemnity insurance. CPA Australia therefore recommend that you do not provide such declarations, however, if you do, you must make detailed and rigorous enquiries.
CPA Australia has published two new guidance notes to assist members when advising on consumer credit.
Consumer credit reform: provides guidance on what activities are now covered by the National Credit Act, and what activities can be provided to a consumer without holding an Australian credit licence or being licensed as a credit representative.
Accountant's letters and capacity to repay certificates: provides guidance on accountant's letters, what assistance an unlicensed accountant can provide in the lending process and what activities are exempt under the the National Credit Act.