A top law firm has slammed amendments to the NCCP, saying brokers have yet to come to terms with the original legislation.
The government recently released 14 proposed amendments to the NCCP, and Jon Denovan of Gadens Lawyers has blasted the timing of the release.
Denovan said though many of the amendments were largely expected, they overburden an industry already struggling with regulation.
“It’s what’s been expected to come along for some time, but that doesn’t mean it’s good. There should be no more regulation, because we’ve got to let the dust settle and let people understand where we’re up to,” he said.
Many of the proposed amendments deal with EDR schemes and hardship requirements. Denovan was particularly critical of proposals to remove the $500,000 cap on credit amounts eligible for hardship claims.
"It's bloody ridiculous that someone who owes $5m should be able to apply for hardship, which is what they'd be able to do," he said.
Denovan also expressed concern over amendments putting more financial liability on brokers for unfair and dishonest conduct. He said the definition of "unfair and dishonest" conduct could be too broad. “The difficulty is the uncertainty of it all,” he said.
Denovan said brokers may have trouble making sense of the legislation as it stands, let alone proposed changes.
“It’s very big piece of legislation, and lawyers are going to read it different ways. Small businesses have no bloody chance of understand it,” Denovan added.
Click here to read the amendments in full