Article Archive

Proposed national Finance Broking Legislative Model - IT WILL BE DIFFERENT IN EACH STATE

Industry Not Consulted on Proposed National Regulation

by Maurie Unwin

Proposed National Finance Broking Legislative Model

IT WILL BE DIFFERENT IN EACH STATE

    

Proposed National Finance Broking Legislative Model.  

“It will be different in each State”  

 

The FBAA was not consulted and we believe finance brokers at large were not consulted thoroughly prior to the draft Bill being released on the 28^th November 2007  

 

The proposed regulatory scheme will create an un-level playing field. It will only apply to Brokers who will be required to do the job of the Lender in relation to credit checks and the credit worthiness of the consumer plus the imposition of entering into a finance broker Contract before doing business.  

 

NO LENDER WILL BE REQUIRED TO DO ALL THIS PRIOR TO DOING BUSINESS.  

 

The FBAA favours the ASIC model as proposed by the Federal Governments’ Productivity Commission, endorsed by the ABA.  

 

We need your support to fight this UNREASONABLE, UN-COMMERCIAL, EXTREME piece of State based National Legislation. The profession cannot allow this legislative model to go through in its current form.  

 

 

 

Proposed National Finance Broking legislation   

Invitation to comment  

Issued: 28^th November 2007  

 

Note: All types of broking structures will be regulated: mortgage brokers, finance brokers, single line broking and single mobile operators, as well as aggregators and franchised organisations. While brokers of credit for small businesses are covered by the framework of the regulatory scheme, there will be differences in the requirements for disclosure and the contractual relationship, to take into account differences in the way brokers and businesses transact.  

Download a copy of the proposed Bill directly from the NSW Office of Fair Trading's website:  

http://www.fairtrading.nsw.gov.au/corporate/legislation/commentproposedlegislation.html  

 

Submissions: Closing date 15^th February 2008  

All interested individuals and organisations are invited to comment on the Exposure Draft Bill.To assist with the assessment process it would be helpful if, where applicable, you make reference to the relevant clause numbers in your submissions.  

 

Comments in writing should be posted, faxed or emailed to:  

 

Senior Project Manager (Credit)  

Policy & Strategy Division  

NSW Office of Fair Trading  

PO Box 972  

PARRAMATTA   NSW   2124  

 

Fax:  (02) 9338 8918  

e-mail: policy@oft.commerce.nsw.gov.au