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Start Date for Credit Guides, Quotes & Proposals

- deferred to 1 October 2011

Text Box: Federal Treasury announced today that: The new National Consumer Credit Protection Amendment Regulations 2011 (No.4) were recently made which amend the National Consumer Credit Protection Regulations 2011 and clarify the disclosure obligations of lenders and brokers under the Credit Act. The enhanced disclosure obligations will commence on 1 October 2011. The Amendment Regulations also extend the transitional period for compliance from 1 August 2011 till 1 October 2011. A Media Release from Treasury is expected to be added to the Treasury website shortly. A reason for the deferral is due to further amending regulations, which prescribe the content requirements of the disclosure documents needed to be issued under Chapter 3 of the National Credit Act, dealing with Responsible Lending Conduct. Whilst we do not expect that the amending regulations will affect the content requirements of credit guides for lenders, they most certainly will affect the content requirements of the following documents which will need to be used by credit assistants: Credit Quotes; Credit Guides; Credit Proposal Documents. Although the temptation may be to wait until the amending regulations are released before taking steps to draft these documents, our view is that because timelines will be so short, it is important to a least have draft documents ready for review in the near future. The documents can then be amended if needed when the further amending regulations are made. We are here to assist. Phone us on 1300 369 581 Richard Williams Partner, Banking Services

PLEASE NOTE: This newsletter is not legal advice and our comments are of a general nature only. This document is not to be relied on as substitution for proper detailed advice.

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Email us at macgill@macgillivrays.com.au

Phone us on 1300 369 581

Monday 1 August 2011

Banking Services Alert