The Federal Government has released a statement setting out more
information about the proposed Federal takeover of credit. In
summary it appears that:
- the UCCC will be enacted as Federal law and extended to cover
mortgages on investment properties;
- financial brokers, advisors and credit providers are to be
covered by a national licensing scheme, with lenders licensed by
ASIC
- there is to be one external dispute resolution body to which
all lenders must belong;
- the Corporations Act is to be extended to cover margin
lending.
The timing for these changes is expressed to be the end of June
2009 with a two-year transition.
The statement also contemplates a second phase of changes with
possible further rules to stem predatory lending. The timing for
this phase is expressed to be the first half of 2010.
