The Federal Government has released a statement setting out more information about the proposed Federal takeover of credit. In summary it appears that:
- the UCCC will be enacted as Federal law and extended to cover mortgages on investment properties;
- financial brokers, advisors and credit providers are to be covered by a national licensing scheme, with lenders licensed by ASIC
- there is to be one external dispute resolution body to which all lenders must belong;
- the Corporations Act is to be extended to cover margin lending.
The timing for these changes is expressed to be the end of June 2009 with a two-year transition.
The statement also contemplates a second phase of changes with possible further rules to stem predatory lending. The timing for this phase is expressed to be the first half of 2010.
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