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.

MFAA regulation complaints approved

Staff Reporter 1 minute read

By: Jessica Darnbrough

The MFAA has successfully lobbied ASIC to amend the fee structure for sole traders outlined in the National Consumer Credit Protection Act.

Under the original Act, all incorporated companies would be required to pay a licence fee of $1,000 per annum, regardless of whether or not they were a sole trader operating through a company vehicle.

“When the fee structure was first discussed, we were led to believe that sole traders would only have to pay $450 for a licence each year,” MFAA chief executive officer Phil Naylor told The Adviser.

“However, when the regulation came out it said that any company would be required to pay $1,000. As such, any sole traders that were incorporated would also be required to pay this fee.”

“We made a complaint to Treasury, who have since amended the Act.”

Under the amendments, a sole trader is now defined as any natural person, or a person that has only one representative that engages in credit activities.

Separately, ASIC has clarified that licensees conducting servicing and other intermediary activities which are not directly related to lending or arranging a loan will pay $450 for a sole trader and $1,000 for other companies.

MFAA regulation complaints approved
default
TheAdviser logo
default

 

more from the adviser
parliament Proposed BID extension delayed

The Treasurer has told The Adviser that government will delay fi...

house sold Victorian home buyers make a comeback

Mortgage commitments for owner-occupiers in Melbourne surged in N...

warning Home owners scammed by ‘ruthless criminals’

The WA government has issued a warning surrounding a new scam tha...

FROM THE WEB