Corporations Point-in-Time Service Updates

The Corporations Point-in-Time Service has been updated to include the Treasury Laws Amendment (Professional Standards Schemes) Regulations 2021 (Cth) and the National Consumer Credit Protection Amendment (Debt Management Services) Regulations 2021 (Cth).

Treasury Laws Amendment (Professional Standards Schemes) Regulations 2021

This instrument amends the Australian Securities and Investments Commission Regulations 2001, Competition and Consumer Regulations 2010 and Corporations Regulations 2001 to update the list of prescribed professional schemes that have capped civil liability for misleading and deceptive conduct. This provides consistency across Commonwealth and State and Territory laws.

National Consumer Credit Protection Amendment (Debt Management Services) Regulations 2021

The purpose of the Regulations is to protect consumers by introducing licensing obligations for persons providing debt management services to debtors and guarantors. Debt management services includes assisting consumers in dealings with credit providers or to correct their credit report.

To achieve this, the Regulations prescribe debt management services as a new type of credit activity. This requires providers of debt management services to hold an Australian credit licence and meet ongoing obligations imposed on licensees. These obligations include the requirement to meet the ‘fit and proper person’ test, to undertake their activities ‘efficiently, honestly and fairly’, and to be members of the Australian Financial Complaints Authority (AFCA) scheme.

These amendments have been updated in the Point-in-Time Corporations Service current to 5 May 2021. (NB: subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.