ASIC runs up white flag on Westpac responsible lending
The Australian Securities and Investments Commission (ASIC) has run up the white flag on its responsible lending legal battle with Westpac.
The regulator has announced I will not be seeking special leave to appeal to the High Court in the Westpac ‘responsible lending’ matter, following the full Federal Court’s 2-1 decision to reject its earlier appeal.
A formal statement from ASIC said that while it would be open to the reglator to seek special leave to appeal to the high court, it was mindful of the impact of the additional time required to resolve the matter in “the current challenging economic circumstances”.
Instead, ASIC said it would review its updated regulatory guidance RG 209 (Credit licensing: responsible lending conduct) and consider what implications the Federal Court decision had for that guidance.
“Any reform of the National Consumer Credit Protection Act (National Credit Act) to clarify further the enforcement of those principles is ultimately a matter for the Federal Government and Parliament,” ASIC said. “Bearing in mind the economic circumstances, it is important to remember that under the National Credit Act, ‘responsible lending’ obligations do not apply, and never have applied, to loans made for business purposes.”
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