Hi all
I am Starting my WRAP career in WA, We need a Credit Providers License ( CPL ) which requires the $2 Company ( Trustee ) to have a minimum of $10,000 capital.[angry2]
I don’t want to lock my capital away has any one had any dealings in this area?Cheers
Shane_o
You don’t have to lock your capital away. Simply get $10,000 (from Credit Card or even RediCredit), show the dep. that deals with this issue your bank statement and you should be fine. Or borrow it of a friend and pay a higher interest rate.
Please note: I have never wraped any property in WA, it is only what I know of the process and what others have done. Please make sure what I have suggested is legal too!
Rgds.
Lucifer_auHi Lucifer
This is what I asked my Solicitor and his reply;[blink]
Does the $10,000 Capital for Adams Pty Ltd have to stay in the company after CPL approval as I want all capital to be held in the Trust itself? ( myself )
If not the company needs to have recourse against the assets of the
trust to make good its own liabilities incurred in the course of
performing its role as trustee, and you would need to include that in
the deed of trust and show it to DOCEP. You would also need to provide
financial statements for the trust as well as the company’s own
financial statements. ( Solicitor )Hi Shane,
How difficult is it to get the Licence ? Do you have to complete the finance brokers course first ?
I too am in WA and have been asking the question regrding the legality of wrapping in WA. I was under the impression that it was not legal, here and in SA.
Any info on this matter ?
Cheers, KPHi KP,
I am not a wrapper so take what I say with a grain of salt.
As I understand it the Ministry of Fair Trading require you to have a credit providers licence and once you have secured this then you are able to legally wrap in WA.
I recommend a phone call to MOFT and speak to te people there – it is possible thay may also have a FAQ sheet or similar.
If MOFT require you to have $10K in kitty at all times I would ensure that you do – consider this the cost of doing business. Just as people have to have come capital invested somewhere in all (?) business ventures then you need to invest the $10K in your business.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Cheers Derek,
I suspect it is not that easy to get issued with a CP Licence.
I started doing FInance Broking 1 & 2 last year, and the FBSB kept moving the goalposts till in the end you had to do all the units towards the Certificate in Finance Broking before you could get a licence.
But I will contact MOFT to check out the requirements regarding the CP licence.
Most properties where I am are +ve geared with high rents so there is a potential market for rental/purchase or wrapping if its legal…Cheers, KEvin..
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