ASIC updates guidance on margin lending
The Australian Securities and Investments Commission (ASIC) has released updated policy and regulatory guidance as issuers and advisers of margin loans prepare for the new licensing requirements for the provision of margin loans.
The commencement date of the new consumer credit rules covering margin lending is yet to be announced, but from that date issuers and advisers will have a 12-month transition period.
Following the reforms, the same licensing, conduct and disclosure requirements that apply to financial services will apply to providers and financial advisers in relation to margin lending facilities, ASIC said, while margin lending facilities will be regulated in the same way as other financial products.
“In addition, the regime imposes new responsible lending requirements on issuers of margin lending facilities and clarifies responsibility for providing notification of margin calls,” the ASIC statement said.
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