ASIC has released Consultation Paper 115 Responsible lending (CP 115) explaining how ASIC proposes to implement the responsible lending obligations as they apply to credit licensees.

Under the responsible lending obligations, licensees will have to conduct reasonable inquiries about a consumer and assess that a credit product is not unsuitable for the consumer before offering or providing the credit product.

The Consultation Paper gives guidance on its expectations how those obligations will be performed.

It also contains guidance about ASIC’s expectations for the form and content of both the preliminary and final written assessment that a credit contract is not unsuitable.