Responsible Lending Conduct

The Australian Securities and Investments Commission (ASIC) sets out the guidelines and obligations for responsible lending for those dealing with consumers requiring credit advice.

Regulatory Guide 209 gives practical guidance to regulated entities by explaining any changes made on a specific process or compliance issue, or an overview of detailed guidance, for example describing:

• The Australian Credit Licensing (ACL) requirements imposed on Credit licensees and,
• The general conduct obligations and responsible lending obligations imposed on credit providers, lessors, credit assistance providers and credit representatives.

The objective of this course is to provide students with an overview of Regulatory Guide 209, as well as the National Consumer Credit Protection Act, and to understand a number of amendments and enhancements made to the legislation by ASIC, such as:

• When making reasonable enquiries and verifications
• When making a preliminary and final assessment that a credit contract is “not unsuitable” for a consumer 
• Your obligations relating to documents required to be provided to consumers
• Additional responsible lending requirements for Reverse Mortgages
• Provisions regarding small amount credit contracts (SACC)
• Provisions regarding consumer leases
• Hardship provisions for credit contracts and consumer leases
• Provisions on unfair contract terms and dishonesty.