The Government welcomed the passage last night of the National Consumer Credit Protection and Financial Services Modernisation reforms through the Senate.
These reforms will see the creation of a single, standard, national law for the regulation of consumer credit, commencing on 1st July 2010.
The new laws will also see for the first time consumer protections and regulation put in place for margin loans, as well as the national regulation of trustees and debentures.
"These reforms have been a long time coming," Minister for Financial Services, Chris Bowen said.
"They will help provide greater certainty to the credit sector while strengthening the range of protections that are in place for vulnerable consumers.
"These important reforms were only possible because they are part of the Rudd Government's and the Council of Australian Government's (COAG) drive to a National Seamless Economy.
"As the fallout from economic and financial market chaos has reverberated around the world, it is clearer now than ever that Australia needed to adopt a national approach to consumer credit regulation – a system where consumer and credit providers alike can look to the one, national set of rules."
The delivery of these reforms is part of Phase One of the historic agreement made by the COAG in October 2008 for the Commonwealth to assume responsibility for consumer credit regulation.
"The focus for the Government now is bedding down these reforms and working with key industry and consumer groups as well as the credit regulator, the Australian Securities and Investments Commission (ASIC) to allow for a smooth transition to the National Consumer Credit Code.
"The Government is currently contemplating the scope of Phase Two reforms and will be engaging key stakeholders on these proposed reforms over the coming months."
For more information on the progress of Phases One and Two, interested parties can go to www.treasury.gov.au/consumercredit.
27 October 2009