A major provider of non-conforming loans says the likelihood of an ASIC review of low doc lenders in 2013 isn’t cause for concern.
Michael Watson, distributing manager of MKM Capital, says he isn’t aware of any direct correspondence from ASIC regarding such a review, but says the possibility does't worry him.
“Given new laws have only been in place for a short time, it is absolutely an opportune time for a review to ensure compliance and work through any areas for improvement as early as possible.”
Watson says the NCC had its biggest impact within the non-bank/low-doc space, so therefore it’s appropriate ASIC follow-up this segment of the market with an early review to ensure clarity and consistency.
However, he says concerns over clarity in ASIC regulations haven’t actually been an issue for MKM.
“We have always viewed audits as an opportunity for improvement rather than a threat…MKM has in-house legal counsel and has built strong communication channels with ASIC and appropriate stakeholders to ensure we understand our requirements.”
Watson says he hopes the effect of the review will be to keep compliance front-of-mind amongst lenders and to identify areas for clarification.
“I would be amazed if any lender was still operating in a manner which could receive a serious reprimand under such a review.”