The Banking and Finance Point-in-Time Service has been updated to include the Financial Sector Reform (Hayne Royal Commission Response—Protecting Consumers) (Mortgage Brokers) Regulations 2020 and the National Consumer Credit Protection Amendment (Responsible Lending Obligations) Regulations 2020.
These Regulations, together with Schedule 3 to the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019
Measures)) Act 2020 implement the Government’s response to Recommendation 1.3 of the Royal Commission
into Misconduct in the Banking, Superannuation and Financial Services Industry, to
address conflicted remuneration for mortgage brokers.
The Regulations amend the National Consumer Credit Protection Regulations 2010 to prescribe circumstances under which a benefit is and is not conflicted remuneration. They also prescribe circumstances under which conflicted remuneration must not be accepted and circumstances in which conflicted remuneration must not be given.
This instrument amends the National Consumer Credit Protection Regulations 2010 to make a targeted adjustment to the regulatory settings pertaining to the responsible
lending obligations contained in the National Consumer Credit Protection Act 2009.
The timely flow of credit to small businesses continues to be a priority in the response to the economic challenges posed by the coronavirus pandemic. Accordingly, the Regulations make a further targeted adjustment to the regulatory settings pertaining to the responsible lending obligations. As with the April 2020 Regulations, the Regulations are temporary and the exemption is available for 6 months only. The exemption applies:
These amendments have been updated in the Point-in-Time Banking and Finance Service current to 13 October 2020. (NB: Subscription required).
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