Credit regulations and ASIC guidance out...Time for comment, in!

7 December 2009

The following regulations support the National Consumer Credit Protection Bill 2009, which was recently passed by the Senate.

National Consumer Credit Protection Regulations 2010

Please see the one page mind map which summarises what’s covered by the Regulations. Click on the diagram to download it.

National Consumer Credit Protection (Fees) Regulations 2010

These Regulations help you work out ,amongst other things, the cost of an ACL application. Schedule 1 of the Regulations states that the fee for lodgment varies depending on:

a) whether the applicant is a sole trader or a body corporate; and

b) the total amount of:

o credit advanced in the preceding financial year; plus

o credit in application submitted to credit providers in the preceding financial year; plus

o rent payable by consumers under consumer leases entered into by the applicant in the preceding financial year.

For example, for a body corporate where the total for item b) above is over $1 million, the fee is $12,000.00.

The fee for lodgment of an annual compliance certificate is calculated in the same way as the application fee.

National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010

These Regulations support the National Consumer Protection (Transitional and Consequential Provisions) Act 2009. The Act and the Regulations cover:

how to become registered
conditions on registration
obligations of registered persons
suspension,cancellation and variation of registration;and
who is exempt from registration

Look out for our upcoming blog on the registration process.

Have your say:

The Government is seeking submissions on the exposure draft regulations by close of business Friday 11 December 2009. Further details how to make a submission can be found at http://www.treasury.gov.au/contentitem.asp?NavId=002&ContentID=1670

Questions? Leave a comment below or give Kathryn a call.