Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

Mortgage offset class orders remade

mortgage  mortgage
Julianne Leybag 4 minute read

ASIC has remade two class orders on mortgage offset accounts and factoring arrangements, with minor amendments, following a largely ignored consultation.

The financial services regulator released a consultation paper earlier this year on re-establishing the instruments that were due to expire on 1 October 2017.

The paper outlined that the instruments were “operating effectively and efficiently and continue to form a necessary and useful part of the legislative framework”, but suggested a few minor changes to “ensure the relief applies in the intended way”.

As no submissions were received in response to the proposals outlined, the instruments have now been remade as proposed.

Advertisement
Advertisement

For example, the Mortgage offset accounts class order [CO 03/1048] will be reinstated with the following amendments:

  • no requirement for EDR membership, which is now “redundant” due to the commencement of the National Consumer Credit Protection Act 2009;
  • an update to the name of the legislative instrument to ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/XX;
  • an update to reflect current drafting practice and update the format of the current document;
  • simplified drafting to give greater clarity;
  • updated legislative references and definitions; and
  • corrections to any minor drafting errors.

Likewise, the class order Factoring arrangements: Licensing, hawking and disclosure relief  [CO 04/239] will include:

  • clarity that the relief applies to the extent that a factoring arrangement constitutes a derivative;
  • an update to a reference to the Australian Standard on complaints handling to the relevant current standard;
  • an update to the name of the legislative instrument to ASIC Corporations (Factoring Arrangements) Instrument 2017/XX;
  • a change to reflect current drafting practice and an update to the format of the current document;
  • simplified drafting to give greater clarity;
  • updated legislative references and definitions; and
  • corrections to any minor drafting errors.

The ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795 will replace Class Order [CO 03/1048] Mortgage offset accounts, while the ASIC Corporations (Factoring Arrangements) Instrument 2017/794 will replace Class Order [CO 04/239] Factoring arrangements: Licensing, hawking and disclosure relief. 

[Related: ASIC consults on mortgage offset class order]

Mortgage offset class orders remade
mortgage
TheAdviser logo

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!

PROMOTED CONTENT


mortgage

 

more from the adviser
AFG office AFG-Connective merger unlikely to complete

The aggregator has flagged that delays from the courts in deliver...

money grants Fintech calls for SME Recovery Loan Scheme extension

The non-bank lender is calling on government to extend its SME Re...

boardroom BOQ reshuffles board following ME Bank acquisition

Following the completion of its acquisition of ME Bank, BOQ Group...