Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Concern at scope of consumer credit regulation

federal-government/chief-executive/

7 October 2008
| By By Liam Egan |

The chief executive of Sequal, Kevin Conlon, has voiced concern at statements the Minister for Superannuation Nick Sherry made to include reverse mortgages in a plan for greater regulation of consumer credit.

Sherry’s statements were made in a paper on the Federal Government’s $71 million proposal for national regulation of consumer credit, which includes the Uniform Consumer Credit Code legislation.

This proposal follows agreement at the March and July Council of Australian Government meetings, and again yesterday, to transfer consumer credit to the Commonwealth Government.

Sherry referred to the “possible regulation” of reverse mortgages within phase two of the regulatory plan, which includes “moves to reduce predatory or undesirable lending practices”.

“It concerns me that comments from Minister Sherry overnight tend to bundle into a broader discussion on finance broking a reference to reverse mortgages,” Conlon said.

“The markets are different, the demand is different, and the consumer protection needs are different.” There is “clearly the need for an equitable and efficient seniors’ equity release market”, Conlon said, but “significant consumer benefit can arise only when the impact of regulatory change is carefully considered”.

“I would be concerned if [reverse mortgages] were referred to in the broad context of the need for national regulation of finance broking without there being a proper understanding of the importance of a meaningful consultative process between industry and regulators and the Government.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 5 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 4 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks 6 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 3 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

5 days 16 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3