ASIC provides guidance for licensees regarding new consumer credit bill
December 21, 2009
The Australian Securities and Investments Commission (ASIC) has released further regulatory guidance on the implementation of the National Consumer Credit Protection Act.
The scheme is set to replace the present state-based system of consumer credit protection, which operates inconsistently across the eight jurisdictions. It will reduce the likelihood of families who can’t meet their debts losing their homes and give ASIC greater regulatory power in the consumer credit sector.
“The guidance sets out how ASIC will approach the administration of the National Consumer Credit regime,” a statement from ASIC advised. “It has been developed to help industry prepare their credit licence applications and also understand ASIC’s expectations in relation to their obligations as credit licensees.
“Separate guidance has been developed to specifically assist small business operators make a credit licence application. We have also updated regulatory guides on applications for relief and when we will issue no-action letters under the National Credit Act.”
The registration process commences on April 1 next year, with the National Consumer Credit regime to commence in July.
“We will continue to work with people likely to be affected by the new requirements as part of our commitment to achieving a smooth transition for industry,” ASIC Commissioner Dr Peter Boxall added.
To find out more please visit: www.asic.gov.au/ASIC/asic.nsf/byHeadline/09-262AD ASIC releases guidance for credit licensees?opendocument.