Senate approves new credit laws
By
Larry Schlesinger
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27/10/2009 4:00:00 PM
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New credit laws which will require brokers to be licensed and meet new responsible lending obligations have received Senate approval.
National Consumer Credit Protection and Financial Services Modernisation reforms both passed through the Senate last night, the Treasury announced, meaning they will now enter the statute books.
As a result a single, standard, national law for the regulation of consumer credit will commence on 1 July 2010.
Besides regulating brokers, the new laws will also see for the first time consumer protections and regulation put in place for margin loans, as well as the national regulation of trustees and debentures.
"These reforms have been a long time coming," minister for financial services, Chris Bowen said.
"They will help provide greater certainty to the credit sector while strengthening the range of protections that are in place for vulnerable consumers."
Following the fall-out from the GFC, Bowen said it was "clearer now than ever that Australia needed to adopt a national approach to consumer credit regulation - a system where consumer and credit providers alike can look to the one, national set of rules."
"The focus for the Government now is bedding down these reforms and working with key industry and consumer groups as well as the credit regulator, ASIC to allow for a smooth transition to the National Consumer Credit Code," he said.
For a summary of when the new requirements kick in, click here.
For more information go to: www.treasury.gov.au/consumercredit.
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