The CEO of the Finance Brokers Association of Australia (FBAA) says he hopes the personal woes of federal assistant treasurer Arthur Sinodinos do not delay the conclusions to the NCCP.
Peter White revealed he had met multiple times with Mr Sinodinos before the assistant treasurer stood aside, and believed the reforms – to finalise outstanding regulations around motor vehicle and commercial lending – were on the agenda.
“It is important for the industry and the public at large that the exemptions that currently exist to the NCCP be clarified and brought to a conclusion.”
He said while commercial lending as a whole clearly doesn’t sit within the NCCP, there are possibly components that should be under the Act.
The guidelines for motor dealers must also be clarified as, “some dealers think they are exempt from everything”.
“I’ve been closely working with treasury and ASIC for some time, and I believe they share my concern that it is far better to fix the issues now, than let it go and leave a mess for ASIC to clean up,” Mr White said.
“At the moment some motor dealers think they don’t have to provide a credit guide, disclose commission or adhere to responsible lending conduct obligations.
“The exemptions for motor dealers only apply when the dealer is acting as a Linked Credit Provider under their floor plan agreements, yet many are not complying with the act in other situations.”
Mr White said despite the assistant treasurer’s setback, the FBAA is continuing to meet with treasury officials to “keep the momentum going”.
“This is important to the industry’s credibility and to our members, and we will see this through.”