Powered by MOMENTUM MEDIA
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 A quarter of all applications were withdrawn.

Advertisement
Advertisement

“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.

PROMOTED CONTENT


[Related: ASIC publishes product intervention guidance]

ASIC issues report on relief applications
mortgagebusiness

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

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 percentage of young adults looking to pay down their home loans has risen over the past five months, according to new data. ...

Despite the Reserve Bank digging its heels in on the timing of its cash rate climb, Westpac economists have predicted the right conditions w...

Customer-owned banks operate around four branches per $1 billion in assets, while the big four collectively run less than one shopfront per ...

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!

When do you expect the cash rate to start increasing?

Website Notifications

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