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FBAA encourages Federal Government to maximise the scope of regulation

Media Release

The Finance Brokers Association of Australia (FBAA) welcomes the Federal Government's move to regulate the financial services sector and calls on the Rudd Government to broaden the scope of its regulation to include other forms of credit.

FBAA National President, Peter White, said the Association understands the Federal Government is considering encapsulating other credit products such as credit cards and personal loans in its regulatory reform.

"The FBAA would certainly support any move by the Rudd Government to capture in its reform peripheral credit products such as credit cards and personal loans. Today, these types of products are inextricably linked to a household's mortgage and overall financial well-being," Mr White said.

"With all forms of debt and personal credit being inter-related it makes sense to have everything regulated under the 'one roof' for ease of regulation and cost of compliance for both the Government and the industry. Above all, it will also result in better protection for the consumer.

"While some industry participants were satisfied to settle for a state-based regulatory model, the FBAA was adamant that national regulation was the most workable solution for consumers and the industry.

"Now the preferred regulatory framework is due to be implemented, it's imperative the legislation matches the quality of the model and an integral aspect in realising this goal is ensuring the legislation captures all mortgage and credit related products.

"While industry regulation has been long awaited, the move by the Rudd Government to reform financial services and credit regulation provides an opportunity for Australia to lead the world with unparalleled protection for consumers," Mr White said.