The MFAA have discussed with Treasury the recently released
regulations dealing with credit guides, quotes, and proposal
disclosure documents. As a result of these discussions, the
MFAA are very confident that some amendments will be made prior to
1 October 2011 (the start date). There are also some planned
changes for Key Fact Sheets.
Credit guides – identifying panel lenders
Section 113(2)(f) provides that a licensee who provides credit
assistance must specify in the credit guide their panel
lenders. If the licensee has more than six panel lenders, the
credit guide must state the six lenders with whom the licensee does
the most business. The MFAA argued that showing the six
biggest lenders may be uncompetitive (pushing customers towards the
six listed lenders), difficult (because the members of this group
will change from time to time), misleading (as these lenders may
not provide finance suitable for the customer), and may result in
the disclosure of commercially sensitive information without a
corresponding benefit for consumers.
Treasury is now seriously considering amending the regulations
so that licensees have the option of specifying:
all panel lenders; or
the six with whom the licensee does the most business.
The issue also arises in s136(2)(f) and r27A(3) in relation to
credit guides in respect of consumer leases.
Mortgage managers – display of maximum cost and
Regulation 28H(3) provides that mortgage managers need not
disclose their commission (margin) if (amongst other things) the
maximum cost and the interest rate are published on the credit
provider's or lessor's website.
The MFAA submitted that it would be more useful for consumers if
this information is displayed on the mortgage manager's
website. It is anticipated regulations will be amended to
provide that the information can be displayed on the mortgage
When will these amendments be made?
There are Exco meetings (where regulations are approved) on
14 September and 29 September. It is likely that
these amendments will be progressed at one of these two
The MFAA is quite confident that industry can proceed on the
assumption these amendments will be made.
Key Fact Sheets
The legislation requires only the lender of record (licensee) to
provide KFS. Treasury have indicated that it is appropriate
to require mortgage managers to provide KFSs for managed loans
rather than the lender of record. Accordingly, mortgage
managers now need to start planning to be able to produce
KFSs. Although, assuming there are changes to this effect,
the commencement date still needs to be determined, and may not be
1 January 2012.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
Lenders in New South Wales breathed a sigh of relief earlier this month when the Supreme Court ruled in Bank of Western Australia Ltd v. Primanzon  NSWSC 862 that two part-time commercial property investors could not claim relief under the Contracts Review Act 1980 (NSW) because the loans advanced to them were entered into in the course of a trade, business or profession carried on by them.
A key aspect of an innovation culture is keeping it active at all levels of management, from teams to board meetings.
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