EXPLANATORY STATEMENT
Issued by the authority of the Minister for Financial Services, Superannuation and Corporate Law
National Consumer Credit Protection Act 2009
Proclamation
Item 2 of the table in subsection 2(1) of the National Consumer Credit Protection Act 2009 (the Act) provides that sections 3 to 337 and Schedule 1 to the Act commence on a day to be fixed by Proclamation. However, if any of the provisions of Schedule 1 and items 2 and 3 of Schedule 3 do not commence within six months of the date the Act receives the Royal Assent, then those provisions commence on the first day after the end of that six-month period. The Act received the Royal Assent on 15 December 2009.
The purpose of the Proclamation is to fix 1 April 2010 as the day on which sections 3 to 337 and Schedule 1 to the Act will commence.
The Act creates a national regime for the regulation of consumer credit. It replicates the state-based Uniform Consumer Credit Code as the National Credit Code, and creates a national licensing scheme for all providers of consumer credit and credit related services, regulated by the Australian Securities and Investments Commission (ASIC). It also introduces responsible lending conduct requirements for all licensees.
The Proclamation relates to the commencement of the provisions relating to licensing, responsible lending conduct, matters of administration by ASIC, consumer remedies, compliance and enforcement, and other miscellaneous matters (sections 3 to 337). It also relates to Schedule 1 to the Act which is the National Credit Code. All the provisions of the Act, other than sections 3 to 337 and Schedule 1 to the Act commenced on day the Act received the Royal Assent.
The commencement date provides time for the consumer credit industry and for ASIC as the national regulator to put the necessary administrative systems in place. The commencement date has been agreed with ASIC.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Authority: | Item 2 of the table in subsection 2(1) of the National Consumer Credit Protection Act 2009 |