Please find below a summary of the key points raised by Senator
Nick Sherry today, which provides the latest update for the
Commonwealth takeover of credit and finance broking.
Although it is envisaged that legislation will be in place by mid
2009, it is understood there will be a two year transition
Phase one legislation to be in place by mid 2009. Key elements
of the Phase One Action Plan will include:
enacting the existing State legislation, the Uniform Consumer
Credit Code (UCCC), into Commonwealth legislation;
establishing a national licensing regime to require providers
of consumer credit and credit-related brokering services and advice
to obtain a licence from ASIC;
extending the powers of the Australian Securities and
Investment Commission (ASIC) to be the sole regulator of the new
national credit framework with enhanced enforcement powers;
requiring licensees to observe a number of general conduct
requirements including responsible lending practices;
requiring mandatory membership of an external dispute
resolution (EDR) body by all providers of consumer credit and
credit-related brokering services and advice;
extending the scope of credit products covered by the UCCC to
regulate the provision of consumer mortgages over residential
extending the operation of the Corporations Act to
regulate margin lending;
regulation of trustee corporations.
Phase Two legislation to be in place by mid 2010. Key elements
of the Phase Two Action Plan will include:
enhancements to specific conduct obligations to stem
unfavourable lending practices, such as a review of credit card
limit extension offers, an examination of State approaches to
interest rate caps; and other fringe lending issues as they
regulation of the provision of credit for small
regulation of investment loans other than margin loans and
mortgages for residential investment properties;
reform of mandatory comparison rates and default notices;
enhancements to the regulation and tailored disclosure of
examination of remaining existing State and Territory reform
The Government will conduct continued consultation with
industry, the community and the States and Territories to inform
the implementation of the action plan.
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t +61 2 9931 4753
t +61 2 9931 4810
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