The assistant Treasurer Nick Sherry said yesterday that Australian bank customers and borrowers will get world class credit regulations when the new national credit licencing system is introduced in January 2010. Under the new laws, lenders and brokers will have to ensure that the borrower can afford the debt they are taking on.
"My only wish is that this [regulatory reform] had occurred earlier," Senator Sherry said. "Lenders would be obliged to first assess that the loan is not unsuitable for the consumer," Mr Sherry said. The minister said that problems encountered by the clients of financial advisors Storm Financial are a key example of the adverse impact of unregulated margin lending.
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