The Corporations Amendment Regulations 2010 (No. 4) prescribe details for the Commonwealth’s new margin lending disclosure regime which commences on 1 January 2011.
The new regulations permit a person providing both financial services and credit products to combine the Financial Services Guide and Credit Guide.
The regulations define a margin lending facility as a financial product for the purposes of the Australian Securities and Investments Commission Act (ASIC Act). This ensures that the general consumer protection measures which apply to other financial products under the ASIC Act extend to margin loans, including prohibitions from engaging in unconscionable conduct or conduct that is misleading or deceptive, and from making false or misleading representations.
UPDATE: ASIC has reminded issuers of (and licensees whose employees and/or authorised representatives advise on) margin lending facilities that they have until 30 June 2010 to apply for an Australian Financial Services licence (AFSL) : See Information Sheet