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ISCOVER
The financial services regulator has released a consultation paper on its proposals to remake two instruments relating to mortgage offset accounts and factoring arrangements.
The class orders are due to expire on 1 October 2017, and while ASIC has said that these instruments are “operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework”, it has suggested a few minor changes to “ensure the relief applies in the intended way”.
For example, ASIC has proposed that the Mortgage offset accounts class order [CO 03/1048] be reinstated with the following amends:
- remove the requirement for EDR membership, which is now “redundant” due to the commencement of the National Consumer Credit Protection Act 2009;
- update the name of the legislative instrument to ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/XX.;
- reflect current drafting practice and update the format of the current document;
- simplify the drafting to “give greater clarity”;
- update legislative references and definitions; and
- correct any minor drafting errors.
Likewise, the regulator has suggested making the following tweaks to the class order Factoring arrangements: Licensing, hawking and disclosure relief [CO 04/239]:
- clarify that the relief applies to the extent that a factoring arrangement constitutes a derivative;
- update a reference to the Australian Standard on complaints handling to the relevant current standard;
- update the name of the legislative instrument to ASIC Corporations (Factoring Arrangements) Instrument 2017/XX;
- reflect current drafting practice and update the format of the current document;
- simplify the drafting to give greater clarity;
- update legislative references and definitions; and
- correct any minor drafting errors.
ASIC has said that it is seeking feedback from mortgage brokers and “providers and users of debt factoring arrangements” on the proposals.
The deadline for submissions is 6 July 2017.
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