International Law

Consumer credit regulation to be transferred to Commonwealth

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Commonwealth Government reached agreement with the States and Territories at the Council of Australian Governments (COAG) meeting in Sydney on 3 July, to assume responsibility for regulation of all consumer credit.

Consumer credit includes personal loans, credit cards, pay day lending and micro loans.

COAG has also formally agreed today that the Australian Government will assume responsibility for regulating mortgages, mortgage brokers, trustee companies, non-bank lenders and margin loans.

In March, COAG requested that the case for reform of consumer credit be further examined. To this end, the Government released a Green Paper on Financial Services and Credit Reform in early June.

During the coming months, the Commonwealth Government, in consultation with the States and Territories, will develop a plan to present to COAG before the end of 2008 on how this major agreement will be implemented.

Full post as published by Australian Regulatory Compliance Review on July 03, 2008 (boomark / email).