Financial planners warned to prepare for credit licensing regime
|
|
Some 40 per cent of financial planners provide debt advice or loan assistance to their clients, which might lead to problems if they do not hold a credit licence after July 1, according to Goldseal.
Claire Wivell Plater of Goldseal compliance and legal services said after that date, anyone who provides credit services in relation to a credit contract or a consumer lease, either on their own behalf or on behalf of another person, must hold a licence under the new Consumer Credit Regime.
She said common consumer credit contracts include housing loans, personal loans, credit cards and pay day loans.
“In some situations, it can be a fine line between what conduct is credit assistance and what is not,” Wivell Plater said.
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, said the Australian Securities and Investments Commission had established systems that would allow both the registration and licensing requirements to be conducted completely online, with provision for paper-based applications where necessary.
The registration process will begin on April 1, 2010.
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
