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Andrea Beatty

Partner

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15 Jul 2019

ASIC releases public submissions in response to Consultation Paper 309 – Update to RG 209: Credit licensing: Responsible lending conduct (CP 309)

ASIC has released the submissions received in regards to Consultation Paper 309 – Update to RG 209: Credit licensing: Responsible lending conduct.

Partner, Andrea Beatty, Lawyer, Chelsea Payne and Law Clerk, Chloe Kim discuss the nature of the submissions released. 

ASIC requested public consultation with the release of Consultation Paper 309 – Update to RG 209: Credit licensing: Responsible lending conduct (CP 309) on 14 February 2019 regarding an update on the guidance for responsible lending.[1] Piper Alderman reported on the release of CP 309 in the February Banking and Finance Publication which can be read here. CP 309 is aimed at updating and reviewing Regulatory Guide 209 Credit licensing: Responsible lending conduct (RG 209) and sought feedback on matters such as:

  • reasonable inquiries and verification regarding consumer credit contracts; 
  • verification sources;
  • benchmarks about a consumer’s actual income or expenses;
  • inquiries into consumers’ requirements and objectives;
  • situations where responsible lending obligations would not apply;
  • fraud risk and responsible lending obligations;
  • repayment history information; and
  • record keeping and written assessments.

After releasing CP 309, ASIC received 72 submissions in response, 64 of which were non-confidential submissions and can be accessed here. The main categories of the submitters were banks, digital banks, law firms, universities, non-bank lenders and government bodies. Piper Alderman submitted a response to CP 309 and our submission can be read here.

 

[1] ASIC, ‘Consultation papers – CP 309 Update to RG 209: Credit licensing: Responsible lending conduct’, media release, 14 February 2019, https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-309-update-to-rg-209-credit-licensing-responsible-lending-conduct/.


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