Draft consumer credit action plan bills set for release
Two draft bills for the Federal Government’s National Consumer Credit Action Plan, which embraces margin lending, will be released by the Minister for Super and Corporate Law, Nick Sherry, before the end of this month.
Sherry said this week he expects to have introduced the National Consumer Credit Protection Bill and the Corporations Amendment Financial Services Modernisation Bill into Parliament by the middle of the year.
In an address to the Institute of Actuaries’ Biennial Conference 2009 last week, he said the first bill would contain the new national consumer credit code, which sets the framework for the new national licensing regime.
The National Consumer Credit Action Plan will effectively establish a national licensing regime, administered by the Australian Securities and Investments Commission, which will cover all credit providers as well as advisers and credit and mortgage brokers.
The second bill, which Sherry said would be introduced to Parliament within a month after the first bill, will address margin lending, trustee companies and debentures.
The bills follow the release of the Financial Services and Credit Reform Green Paper in June last year and an agreement a month later by state and territory leaders to transfer consumer credit to the Commonwealth.
Prime Minister Kevin Rudd then announced the Government's $71 million National Consumer Credit Action Plan for a single, standard national regulation of consumer credit for Australia.
This action plan was structured around three core goals — boosting consumer protection, cutting red-tape for business and delivering on the Government's commitment to modernise Australia's key financial services.
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