ASIC today released regulatory guidance for credit licensees about the responsible lending obligations in the National Consumer Credit Protection Act (National Credit Act). ASIC’s Regulatory Guide 209 Credit licensing: Responsible lending conduct obligations (RG 209) has been developed to help industry understand ASIC’s expectations in relation to their responsible lending obligations as credit licensees.

The release of this regulatory guide is part of ASIC’s effort to provide early guidance to assist credit licensees to comply with their responsible lending obligations on the commencement of the National Consumer Credit regime in July 2010. The responsible lending conduct obligations will apply to brokers and some lenders from 1 July 2010.*

The responsible lending obligations are key new requirements under the National Credit Act. RG 209 takes into account feedback from individual industry participants, industry organisations and consumer representatives following the release of a consultation paper on responsible lending last year (Consultation Paper 115 Responsible lending)

‘The responsible lending obligations are important obligations under the National Consumer Credit regime and are new to industry', ASIC Commissioner, Dr Peter Boxall said.

'This guidance will assist industry and consumer groups understand our expectations about meeting the responsible lending obligations. We will continue to work with industry organisations and consumer representatives to provide further clarity and guidance if and where necessary’, Dr Boxall said.

Further information is available at ASIC.