In February this year, we published an article on our website which was critical of the Royal Commissioner’s findings which failed to recognise the general lack of clarity and direction within the National Consumer Protection Act and in particular, ASIC’s Responsible Lending Guidelines (RG209). This lack of clarity has been in place since RG209’s inception and has created undue confusion for many Finance Brokers and Lenders.
On a positive note, the Royal Commission did create an environment of self-reflection for all industry participants and most have recognised some need for improvement; including ASIC.
Not long after the publication of the Royal Commission findings, ASIC issued a consultation paper to update its guidance of responsible lending. They sought comment from all industry participants.
From the start of this consultation process they stated an intent to better accommodate changes in technology and to also provide more examples of what it considers important during the credit assistance and provision process. Whilst their intent was met with some scepticism, ASIC has continued to stay consistent to this message.
Last Friday at the FBAA Annual Conference, one of their senior managers announced they still intended to publish an updated Regulatory Guide by the end of 2019!
As part of the newly updated RG209, ASIC is indicating it will include more detailed descriptions of what compliance processes should be in place for all ACL holders. They say they will also include examples of what data gathering and verification is considered ‘reasonable’. If this is the case, it’s great news and will help everyone in their endeavours to “do the right thing”.
One of SalesKey’s primary objectives is to share our knowledge and expertise so that regulatory compliance requirements are easier to understand and ultimately you can incorporate them into your sales process…hence our name!
To this end, please don’t hesitate to call us on 1800 954 488 or drop us an email at [email protected] if you have questions, or wish to find out more about our compliance support services. We’d love to work alongside your business to help generate Better Outcomes.
Regards,
Scott and Darren.
