The ASIC Chair’s speech on 3 September contained an important update on ASIC’s regulation of credit and its future plans.
Over the next 12 months ASIC will be:
- “policing the boundary to ensure people aren’t operating outside the licensing system, either intentionally or inadvertently;
- undertaking verification surveillances to make sure the information in licence applications is accurate;
- reviewing practices at the fringe of the market to ensure compliance with the new responsible lending obligations when they come into force;
- working with industry on the application of responsible lending obligations to credit card applications and credit card limit increases;
- undertaking risk-based compliance reviews of credit businesses; and
- finalising guidance on mortgage early exit fees and working with industry to ensure compliance.”
Over 14,700 credit businesses have registered with ASIC and it has already issued 132 licences, with over 400 credit licence applications received.
