Government to unveil consumer credit reforms

The federal government will unveil plans for sweeping uniform and national regulation covering financial and consumer credit services at the Council of Australian Governments meeting later this week.

A working group has been finalising how the government would take over the regulation of consumer credit services from the states in preparation for the national reform agenda, reported The Australian Financial Review.

The proposed plan will give new powers to ASIC and fill gaps in the regulation of services not covered in some states.

The government believes the move will reduce the cost and complexity of regulation for both business and consumers.

On his return from the US, Prime Minister Kevin Rudd said that the global credit crisis had made spending decisions more difficult.

“It’s going to be a challenge to make sure we get the exact policy settings right,” he said.

Australian Bankers Association and consumer advocacy body, Choice, have both pressed strongly for ASIC to be the sole regulator of the financial services sector.