'Bloody ridiculous' NCCP amendments released

by Adam Smith01 May 2012

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

COMMENTS

  • by Nicki - Broker 15 yrs 1/05/2012 11:23:47 AM

    A very big thanks to Jon Denovan, for having the guts to stand up and say what most of us think also.

  • by Bretto 1/05/2012 11:54:38 AM

    I think its strange we are members of a so called professional association and large aggregator groups, but the only ones making sense on legislation is this firm. Obviously this loose hashed up legislation to MFAA keeps telling us what a fine job its done for us, is much more serious to brokers. Basically like all garbage consumer legislation the consumer does not benefit, only larger institutions like the Banks.

  • by Kumar 1/05/2012 12:40:00 PM

    Hell done Jon more law firms like yourself with MFAA must cry out loud and stand up for all of us