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Margin lending requirements
Margin lending
Changes to margin lending, contained in the Corporations Legislation Amendment (Financial Services Modernisation) Act 2009, are part of the Government's plan to regulate consumer credit nationally.
The Act requires (among other things):
- issuers and advisers of margin lending facilities to be licensed by ASIC under an Australian financial services (AFS) licence;
- advisers to only provide advice that is appropriate to the client's individual circumstances;
- margin lenders to meet new responsible lending requirements;
- consumers to have access to external dispute resolution services; and
- clarity around responsibility for notifying clients in the case of a margin call.
Issuers of, and advisers on, margin lending facilities are able to apply for an AFS licence, or a variation to an existing AFS licence, between 1 February 2010 and 30 June 2010.
The balance of the new requirements will take effect from 1 January 2011. |
Find out more
ASIC Website: Printed 03/13/2010
