ASIC outlines tough credit regulation plan
The Australian Securities & Investment Commission (ASIC) will provide for more responsible credit card lending under its new powers, its current boss has said.
In a speech to an American Chamber of Commerce lunch, which was obtained by the Australian, ASIC chairman Tony D'Aloisio reveals that the body will also police areas like credit card limit increases and will undertake risk-based compliance reviews of credit businesses.
"Going forward, our focus is on smoothly transitioning the industry to the new credit regime and ensuring our oversight of the industry is effective," says Mr D'Aloisio in the speech.
The comments come after ASIC took over surveillance of the new national credit regime on July 1st, with the body having already issued 11 regulatory guides and nine information sheets to help businesses understand their obligations.
A tighter regulatory system may also improve the rights of Aussie consumers looking to compare credit cards and secure the best deals. According to the Australian, more than 14,700 credit businesses have registered with ASIC under the new regime and the regulator has so far issued 132 licences.
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