Financial planners warned to prepare for credit licensing regime
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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.
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