The proposed margin lending reforms, which will amend the Corporations Act 2001 and the Corporations Regulations 2001, will require the following:

• Margin lenders will need to ensure they have an Australian Financial Services Licence with the relevant authorisations.
• Advisers who recommend margin lending products will need to apply to vary their AFSL.
• An unsuitability assessment must be performed on all individuals issued with a margin lending product.

The proposals have been subject to change since they were first introduced. Recent developments include:

• The timeline for complying with the new regime has been updated.
• Disclosure obligations have been released, including an example PDS demonstrating the topics that must be covered.
• Dispute resolution requirements have been released.
• Training requirements have been released.

Click on the Mindmap below to see an updated overview of the proposed margin lending laws.

Updated Summary of the Margin Lending Reforms by Holley Nethercote Commercial Lawyers is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 2.5 Australia Licence.

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