The Morrison government has published for consultation the National Consumer Credit Protection Amendment (Mandatory Credit Reporting) Regulations 2020 exposure draft.
The exposure draft seeks to amend the National Consumer Credit Protection Regulations 2010 in order to support the enforcement of mandatory consumer credit reporting (CCR) regime.
The proposed regulatory changes outline the extent to which financial institutions will be required to disclose – and withhold – accurate, up-to-date and complete financial information of customers under the mandatory CCR regime.
It also lays out the powers given to the Australian Securities and Investments Commission (ASIC) to issue infringement notices in the event of non-compliance.
According to the explanatory statement, the draft regulations under the amendment will support the mandatory CCR regime by:
- Setting out additional circumstances when a bank subject to the regime must update or supply new credit information to a credit reporting body;
- Setting out restrictions on a credit reporting body disclosing the information it has received through the mandated regime or derived from this information;
- Setting out the types of information that must be included in statements provided to the Treasurer by credit providers and credit reporting bodies (for example, information about the number of accounts held with the licensee for which financial hardship information has been supplied to the credit reporting body);
- Setting out additional circumstances when the Australian Securities and Investments Commission (ASIC) could issue an infringement notice for a civil penalty (for example, if a credit reporting body has not met its obligations around disclosing (or not disclosing) the credit information it has received through the mandatory regime).
Submissions relating to the consultation on the exposure draft of the new regulations will be accepted until 28 February 2020, with all interested parties encouraged to comment.
CCR bill in progress
The legislation to introduce mandatory CCR for all fully licensed authorised deposit-taking institutions (ADIs) – the National Consumer Credit Protection Amendment (Mandatory Credit Reporting and Other Measures) Bill 2019 – is currently before Senate.
The legislation will require all large ADIs to supply 50 per cent of their consumer credit information within 90 days of 1 April 2020 to all credit reporting bodies it had an existing agreement with on 2 November 2017.
Within 90 days of 1 April 2021, these ADIs will be required to supply the remaining 50 per cent of consumer information.
Hannah Dowling is a cadet journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.
Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency.
Hannah graduated from Macquarie University with a Bachelor of Media and Journalism.