Login
ISCOVER
Staff Reporter
The Australian Securities and Investments Commission (ASIC) has updated its regulatory guide to responsible lending to help lenders and brokers remain within the law.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The Regulatory Guide 209 Credit licensing: Responsible lending conduct now includes guidance on the new responsible lending provisions under the Consumer Credit Legislation Amendment (Enhancements) Act 2012. Some minor clarification of existing guidance has been included.
ASIC Commissioner Peter Kell said today's guidance assists those engaging in credit activities to be aware of their obligations when considering the additional requirements under the Enhancements Act.
“ASIC will adopt a balanced approach to administering the new requirements when industry makes efforts to comply, and the updated guidance will assist in that regard. ASIC will work with industry participants to address and rectify any problems,” he said.
“However, ASIC will take a tougher approach where deliberate breaches, serious misconduct or significant risk of consumer detriment occur.
“ASIC will review its approach and compliance expectations after the first few months, by which time industry should have fully adapted to the new obligations.”
RG 209 now includes guidance for small amount lenders when considering the presumption of substantial hardship and protected earnings amount requirements.
In addition, the guide includes information relating to obtaining and considering account statements when undertaking an assessment for a small amount loan.
