The chief executive of the Finance Brokers Association of Australia hopes the personal woes of federal assistant treasurer Arthur Sinodinos do not delay the conclusions to the NCCP Act.
CEO Peter White
said he had met many times with Sinodinos to discuss the problematic legislation before the assistant treasurer stood aside, and believed the reforms – to finalise outstanding regulations around motor vehicle and commercial lending – were on the agenda.
“It is important for the industry and the public at large that the exemptions that currently exist to the NCCP be clarified and brought to a conclusion,” White said.
There has been much confusion over certain provisions of the act, such as part which deals with the credit activity point of sale exemption for retailers and vehicle dealers.
The guidelines for motor dealers must be clarified as, “some dealers think they are exempt from everything”, White said.
“I’ve been closely working with treasury and ASIC for some time, and I believe they share my concern that it is far better to fix the issues now, than let it go and leave a mess for ASIC to clean up.
“At the moment some motor dealers think they don’t have to provide a credit guide, disclose commission or adhere to responsible lending conduct obligations.
“The exemptions for motor dealers only apply when the dealer is acting as a Linked Credit Provider under their floor plan agreements, yet many are not complying with the act in other situations.”
White said while commercial lending as a whole clearly does not sit within the NCCP, there are possibly components that should be under the Act.
Despite the assistant treasurer’s shock stepping down, the FBAA
is still meeting with treasury officials to keep the momentum going.
“This is important to the industry’s credibility and to our members, and we will see this through,” White said.