National credit regime registration period begins
7 April 2010
The National Consumer Credit Regulation Regime is set to commence operation from 1 July 2010. The regime includes:
- a licencing system for those who engage in credit activities (registrations to ASIC from 1 April 2010 and licence applications from 1 July 2010);
- a national credit code (commencing 1 July 2010); and
- responsible lending obligations (aspects commencing between 1 July 2010 and 1 January 2011).
The new licensing regime covers persons who engage in credit activities which include:
- providing credit by way of a credit contract or consumer lease;
- benefiting from mortgages or guarantees relating to a credit contract or consumer lease; and
- providing credit services in relation to credit contracts and consumer leases.
Sub-sections 24(1) to (4) of the National Consumer Credit Protection Regulations 2010, provide limited exemptions for lawyers from the requirements of the licencing regime for certain credit activities carried out in the ordinary course of practice. These exemptions are strictly enumerated and apply only in certain circumstances.
Under the reforms anyone who is not exempt and intends to engage in credit activities from 1 July 2010 is required to register with AISC between 1 April 2010 and 30 June 2010. Registered entities must apply for an Australian Credit License (ACL) between 1 July 2010 and 31 December 2010 to continue engaging in credit activities from 1 January 2011.
ASIC has developed materials to assist with the implementation of the national credit regulation. Details of how to register are available from the ASIC website as is a helpful guide to the implementation timeframes.
The QLS will keep the profession advised of developments in the implementation of the national credit regime as well as the passage of the legislation referring Queensland State credit powers to the Commonwealth presently before Parliament.