Edition 79, June 2010

National Consumer Credit Licensing scheme

On 1 July 2010 the Australian Securities and Investment Commission (ASIC) will take over the regulation of consumer credit and finance broking under the National Consumer Credit Protection Act 2009 (National Credit Act).

This national credit regime will replace the existing state and territory-based regulatory regime. Products that will be regulated under the national credit regime include home loans, personal loans, credit cards, consumer leases, overdrafts and line of credit accounts, among other products and services.

Until 30 June 2010, persons who engage in credit activities will be able to apply to ASIC to be registered. From 1 July 2010, they will be able to apply for an Australian credit licence. Registration is now open and current credit providers and finance brokers are encouraged to become registered now to ensure ASIC has made a decision before 30 June 2010.

It is the obligation of each credit provider and finance broker who engages in credit activities to ensure they are appropriately licensed or registered with ASIC by 1 July 2010. ASIC will not accept registration applications after 30 June 2010. If current credit providers and finance brokers are not registered with ASIC by 30 June 2010, they must stop engaging in credit activities until they either become registered or have an Australian credit licence.

During the transition from state-based regulation to the National Consumer Credit regime, credit providers and finance brokers are required to ensure they abide by the appropriate legislation in force.

For more information visit www.asic.gov.au/asic/ASIC.NSF/byHeadline/Credit%20registration

This page was generated on 30 June, 2010