Credit disclosure regulations clarified

ASIC has issued a Class Order [CO 10/1230] which clarifies National Consumer Credit Protection Legislation Amendment Regulations 2010 (No.4).

The Class Order:

  • permits pre-contractual disclosure to be made in the same manner as other disclosure documents under regulation 28L; and
  • clarifies that the commencement delay in subregulation 28N(1)-(3) is confined to credit guides.

See Explanatory Statement here.

ASIC’s summary of the transitional arrangements for disclosure documents is set out in INFO 137.

UPDATE 23 December: ASIC has been requested to prepare a further class order and explanatory memorandum to confirm that Credit Proposals will also not be required until 1 April 2011 when Regulation 28N(1) applies.

UPDATE 24 December: ASIC has issued [CO 10/1269] varying ASIC Class Order [CO 10/1230] so as to produce the effect that the deferred commencement to 1 April 2011 applies to credit proposal disclosure documents and lease proposal disclosure documents, subject to certain requirements being met. Consequently, subregulations 28N(1) to (3) will apply to credit guides and proposal disclosure documents. See Explanatory Statement . INFO 137 has been amended.

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