subscribe to our newsletter

ASIC issues report on relief applications

The financial services regulator has reported on decisions to grant relief for companies from provisions of the National Credit Act or the Corporations Act in a bid to cut red tape.

In the Australian Securities and Investments Commission’s (ASIC) latest report, Overview of decisions on relief applications (October 2019 to March 2020), the regulator outlines its moves to reduce red tape and “achieve a practical, positive outcome for companies seeking regulatory flexibility, without harming stakeholders”.

ASIC has powers to grant relief under the provisions of chapters two and three of the National Credit Act, which cover licensing and responsible lending, respectively. 

According to the report, ASIC granted relief from provisions of the acts in relation to 619 applications during the report period.

ASIC approved 75 per cent of all credit relief applications it determined in the report period, and it did not refuse any applications. A quarter of all applications were withdrawn.


“The granting of relief, which has a net regulatory benefit, or which facilitates business or cuts red tape, is an important part of ASIC’s regulatory function,” ASIC said.

“The reporting of ASIC’s decisions on relief applications aims to provide transparency about our decision making and to better inform businesses about the circumstances in which we grant relief.” 

The report includes summaries of selected individual relief decisions, publications and legislative instruments that relate to COVID-19, which relate to disclosure, financial reporting, AGMs and registered office closure.

The report also provides examples of ASIC exercising or refusing to exercise its exemption and modification powers under the Corporations Act.

The regulator added: “ASIC will continue to take a facilitative approach, where appropriate, to the provision of individual and class relief to assist business in dealing with the challenges associated with the COVID-19 pandemic and the associated containment measures,” the regulator said.


[Related: ASIC publishes product intervention guidance]

ASIC issues report on relief applications

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.