International Law

Green Paper on Financial Services and Credit Reform

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has released a Green Paper on Financial Services and Credit Reform.

The Green Paper outlines options for the Commonwealth and states to transfer the remaining financial services regulation from the State level. Under the plan, financial services, including mortgages, mortgage brokers, margin lending, non-bank lending and trustee companies, will move to the Federal level. The Green Paper also seeks input on the regulation of other credit products, such as credit cards and personal loans, as well as debentures and property spruikers.

The purpose of the Green Paper is to consult stakeholders about the following range of financial services and credit reform initiatives:

• the development of a comprehensive approach to the regulation of mortgages and mortgage broking advice;
• the regulation of margin lending;
• the creation of a national market for trustee corporations through the implementation of Commonwealth legislation;
• reforms to improve the existing regulation of debentures;
• the investigation of issues relating to property investment advice, including property spruikers; and
• the consideration of the most appropriate regulation of a range of remaining credit products, such as credit cards, personal loans and micro-lending.

The Green Paper sets out key issues for consideration and in some cases high level alternatives are put forward as options for addressing the issues.

Submissions close on 1 July 2008.

Full post as published by Australian Regulatory Compliance Review on June 02, 2008 (boomark / email).