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Who does this affect?

All providers of credit and related services.

What do you need to do?

Continue to monitor developments about this important change and be prepared to make submissions whenever the opportunity arises.

Ros Grady
Partner
T +61 3 9643 4143
Andrea Beatty
Partner
T +61 2 9296 2068

Sydney
Andrea Beatty
James Moore

Melbourne
Katherine Forrest

Perth
Nicholas Creed

Brisbane
Aaron Bourke


Author
Gian Boeddu

Consumer credit regulation will be transferred to the Commonwealth - 4 July 2008

On Thursday 3 July all Australian governments agreed that the Commonwealth will assume responsibility for regulating all consumer credit.

The Federal Minister for Superannuation and Corporate Law, the Hon Senator Nick Sherry, confirmed that the Commonwealth will introduce standard national regulation to replace current regulation in the six States and two Territories.

The new Commonwealth regulation will cover all consumer credit products (including mortgages, personal loans, credit cards, margin lending and pay-day lending) and all related providers (including bank and non-bank lenders and mortgage brokers).

Senator Sherry has stated that it will take up to 12 months to finalise the details of the proposal but a reform plan is expected to be developed by October 2008.

We will continue to keep you informed about these very important developments.

The Minister’s Press Release is available here.

This publication is only a general outline. It is not legal advice. You should seek professional advice before taking any action based on its contents.