AML and finance brokers
AUSTRAC has published an information sheet on its interpretation of the AML obligations of finance brokers.

Comments include:
Finance brokers who are holders of an Australian financial services (AFS) licence and only provide the designated service specified in item 54 of table 1 in section 6 of the AML/CTF Act, will have suspicious matter reporting (SMR) obligations from 12 December 2008.
Finance brokers who provide one or more other designated services and are not merely acting as agents of another reporting entity, will be obliged to report suspicious matters to AUSTRAC when the relevant provisions come into effect.

Permalink

First Home Saver Accounts: training requirements for financial product advisers
ASIC has released an update to RG 146 Licensing: Training of financial product advisers (pdf) to include new requirements for people who give advice about First Home Saver Accounts (FHSA's).

ASIC has applied the Tier 2 level to courses and individual assessments that cover First Home Saver Account (FHSA) deposit accounts, i.e. FHSAs that are an account issued by an authorised deposit-taking institution (ADI), such as a bank, building society or credit union.

Permalink

Privacy Law Reform
The Australian Law Reform Commission has released its Report "For Your Information: Australian Privacy Law and Practice".

The 3 volume report covers most areas of privacy law and makes 295 recommendations for reform, starting with the recommendation that the Privacy Act 1988 be redrafted and restructured to achieve significantly greater consistency, clarity and simplicity.

The ALRC’s national consultation exercise identified concern relating to the loss of privacy as one of the major factors considered by consumers in their dealings with businesses. People are concerned that personal information can be exchanged, bought or sold for secondary use without their knowledge or consent. They are concerned about identity fraud, use of personal information on the internet, businesses sending personal information overseas for processing and the use of personal information for marketing.

By sector, the finance sector continues to be the most frequently complained about industry.

Permalink

Queensland consumer credit interest cap commenced on 31 July
The Consumer Credit (Queensland) Special Provisions Regulation 2008 commenced on 31 July 2008.

Any Consumer Credit Code regulated loans made in Queensland (or made interstate to Queensland residents) after that date are subject to a maximum annual percentage rate of 48 per cent.

The cap also applies to existing contracts if they are changed after 31 July 2008.

Permalink

Transfer of consumer credit regulation to Commonwealth
On 3 July the Commonwealth Government reached agreement with the States and Territories at the Council of Australian Governments (COAG) meeting in Sydney, to assume responsibility for regulation of all consumer credit.

What is still unknown is whether the existing Consumer Credit Code will be adopted "as is" by the Commonwealth or whether new laws will be drafted.

Permalink