ASIC relaxes rural licensing requirements
The Australian Securities and Investments Commission (ASIC) has granted rural financial counselling and money management services limited relief from licensing requirements under the National Consumer Credit Protection Act 2009.
Rural financial planners who give advice on basic deposit products will also receive limited relief from licensing requirements under the Corporations Act 2001.
Financial counselling services for small rural businesses and money management services provided to consumers are funded wholly, or in part, by various Government departments.
The exemptions to the licensing requirements are subject to some important conditions. No fees or charges may be payable by the consumer for any aspect of the financial counselling or money management service; the provider must not engage in any credit activity beyond the scope of the exemptions; and the representatives of the provider must have adequate training.
ASIC senior executive Delia Rickard said the move would benefit rural small businesses and indigenous communities around Australia.
"The exemption for money management service providers will ensure that these important financial literacy programs can continue to provide services to [mostly indigenous] consumers in regional and remote Australia," Rickard said.
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