Policy Update - March #1
Buy Now Pay Later regulatory reforms
Yesterday, the Government released exposure draft legislation to implement Buy Now, Pay Later (BNPL) reforms. This follows previous consultation in late 2022 and should be the final stage of consultation before legislation is introduced to Parliament
The draft legislation amends the Credit Act and the Credit Regulations to bring BNPL into the existing regulatory framework for other credit products. As proposed in previous consultations, the new obligations being consulted on (including Responsible Lending Obligations) are flexible and scalable to ensure they are proportionate to the risk of harm from these products.
FinTech Australia will make a submission. We will circulate further information to our Lending Policy Working Group and invite any interested parties to contact our policy team about contributing to our submission. The closing date for initial submissions is 9 April 2024.
Government launches regulatory initiatives 'grid'
The Government is introducing a new financial sector regulatory initiatives grid to enhance coordination and transparency in financial services regulation and improve communication about future regulatory changes.
The grid will follow a 24-month forward program which will impact financial sectors such as banking, credit, insurance, superannuation, investment, payments, and capital market entities. The scheme will be managed by Treasury, with input from agencies like ASIC, APRA, ACCC, RBA, and the ATO.
Changes to AFCA's Rules & Operational Guidelines
Following consultation last May, AFCA has now finalised changes to its Rules and Operational Guidelines which will come into effect on 1 July 2024.
AFCA has helpfully released a detailed Response Report outlining the final changes and responses to feedback received. FinTech Australia prepared a submission back in May 2023, and we are please to see that AFCAs summary of changes shows several of our recommendations to provide additional explanation were adopted.
A detailed piece on the response will be published on our Policy Updates page.
