New Law gives APRA more powers over non-ADI Lenders

Discussion in 'Loans & Mortgage Brokers' started by KrustyDaPizza, 26th Apr, 2018.

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  1. KrustyDaPizza

    KrustyDaPizza Well-Known Member

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    Last edited: 26th Apr, 2018
    Terry_w likes this.
  2. hobartchic

    hobartchic Well-Known Member

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    Looks like getting a credit card will be much harder for low income earners.
     
  3. Richard Taylor

    Richard Taylor Well-Known Member

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    As non ADI we registered in March of this year and the first reporting of activity is July 2019.

    In saying this at this stage there is 2 years of reporting and then a review period so certainly won't be any meaningful changes happening over night.

    Cheers
     
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  4. KrustyDaPizza

    KrustyDaPizza Well-Known Member

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    ^doesn't prevent APRA from imposing lending limits to Non-ADIs as what was imposed on ADIs
     
  5. Richard Taylor

    Richard Taylor Well-Known Member

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    There has been no impositions placed on ADI's for Non Coded lending in fact this market is looser than it was 18 months ago.

    Not to say it couldn't happen but at the recent APRA round table meeting we attended it was the last thing on their mind. Many more areas of control before a restriction in the Non Coded space.

    Cheers
     
  6. Noobieboy

    Noobieboy Well-Known Member

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    APRA is about protecting the system. It cares little about non ADIs. They are no systemic at this stage. If all of them fold over there is little risk to the system.
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Summary
    Amends the: Banking Act 1959 to: enable the Australian Prudential Regulation Authority (APRA) to makes rules and directions relating to the provision of finance by non-authorised deposit-taking institution lenders which APRA has identified may materially contribute to risks of instability in the Australian financial system; remove restrictions on the use of the term ‘bank’; and insert an objects provision; National Consumer Credit Protection Act 2009 to: require that the suitability of a credit card contract is assessed on the consumer’s ability to repay the credit limit within a certain period; prohibit providers from making unsolicited credit limit offers in relation to credit card contracts and from retrospectively charging interest on credit card balances; and enable consumers to reduce credit card limits and terminate credit card contracts, including by online means; and Financial Sector (Collection of Data) Act 2001, Insurance Act 1973, Life Insurance Act 1995 and National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 to make consequential amendments.
     
  8. Redom

    Redom Mortgage Broker Business Plus Member

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    From their public posturing, this is about monitoring and data collection, rather than specific forcing of following prudential practice guideline they set out for ADI's that lend.
     
  9. tobe

    tobe Well-Known Member

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    Don’t they just need to keep up with the posts here in the finance section?

    You know, like they did with somersoft posts about actual repayments etc.
     

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