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Consumer credit providers and intermediaries urged to act now and register by 30 June 2010
10-136 AD Consumer credit providers and intermediaries urged to act now and register by 30 June 2010
Friday 25 June 2010
ASIC reminds the credit industry to act now and register if they wish to continue engaging in credit activities in relation to consumer credit from 1 July 2010.
All participants who engage in credit activities in relation to consumer credit, including lenders, lessors, mortgage and finance brokers and others providing credit services, must register if they wish to continue carrying on business from 1 July 2010 under the new national consumer credit regime.
ASIC has been very pleased with the response to date, having received nearly 14,000 applications for registration and wants to ensure all relevant businesses register before the deadline so that they can continue to provide credit and credit services to consumers. Applications for registration close on Wednesday 30 June 2010.
Information for anyone who engages in consumer credit activities
Entities and individuals who engage in ‘credit activities’ must register with ASIC (at www.asic.gov.au) by 30 June 2010, or become a representative of a registered credit participant. Registered credit participants will then have six months to apply for an Australian Credit Licence (ACL) between 1 July 2010 and 31 December 2010. New entrants to the consumer credit market will have to apply for an ACL from 1 July 2010 or become a representative of a licensee.
ASIC has released a range of regulatory guidance and information sheets to assist credit providers comply with their new obligations under the National Credit Act. To determine whether the new laws apply, see ASIC’s Regulatory Guide 203 Do I need a credit licence? (RG 203). To register, and find out more information about your obligations as a licensee, or representative of a licensee, visit ASIC’s website at www.asic.gov.au/credit.
Information for lenders in run off mode
Lenders who are in run off mode, that is they have loans regulated under the existing state credit laws and but will not do new lending on or after 1 July must also take action before 1 July 2010 in order to comply with the National Credit Act and to be able to continue operating.
These lenders have a choice to either register by 30 June 2010 and then proceed to obtain a license or, to notify ASIC that they intend to operate unlicensed and be subject to a separate statutory regime.
ASIC has released Information Sheet 110 Lenders with carried over instruments to help COI lenders decide which option is most appropriate for their situation.