ASIC to oversee in credit licence
(21 April 2010 – Australia) Under the new National Consumer Credit Protection Regime, lenders, brokers and intermediaries that deal in consumer credit are now required obtain an Australian Credit Licence.
Credit providers and businesses involved in helping consumers obtain credit can register for an ACL until 30 June 2010, however the regulatory watchdog ASIC has recommended that all brokers register by June 18th to make sure their licence is finalised in time.
If a lender is no longer offering new loans or leases after July 1st, but is continuing to receive payments under pre-existing contracts they can also register and apply for the new licence.
However, if they choose not to apply for the new licence they will be required to adhere to statutory requirments similar to the licence, so that the Australian Securities and Investments Commission can thoroughly monitor their legal conduct.
ASIC has taken over from the individual states and territories and has now been appointed the national regulator for consumer credit and finance broking.
If a lender is no longer offering new loans or leases after July 1st, but is continuing to receive payments under pre-existing contracts they can also register and apply for the new licence.
However, if they choose not to apply for the new licence they will be required to adhere to statutory requirments similar to the licence, so that the Australian Securities and Investments Commission can thoroughly monitor their legal conduct.
ASIC has taken over from the individual states and territories and has now been appointed the national regulator for consumer credit and finance broking.
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