MacroBusiness
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at 9:40 am on March 10, 2021 | 37 comments
Economists and consumer groups have warned that the Morrison Government’s announced axing of responsible lending laws will fuel property inflation by enabling borrowers to take on more debt and bid up prices.
Under the Government’s consumer credit amendment bill, which was introduced in December, responsible lending obligations will be removed from the national consumer credit rules, with the exception of small-amount credit contracts and consumer leases, where enhanced obligations will be introduced.
“would support the supply of credit”.
The consumer groups, which comprise Choice, the Consumer Action Law Centre, Financial Counselling Australia and Financial Rights Legal Centre, believe these comments are imprudent given the recent acceleration in mortgage demand and property prices. They also warn that abolishing responsible lending laws would further inflate property prices by push
This edition of the
Update covers:
Recent legal and regulatory developments, including the release of APRA s policy and supervision priorities for 2021, the launch of APRA s Cyber Security Strategy 2020 – 2024, Australian regulatory support for the ISDA IBOR Fallbacks Protocol and Supplement, and Australia s renewed focus on sanctions;
Two recent Federal Court decisions which support ASIC s position on obligations to comply with ASIC notices and to substantiate any claims for legal professional privilege;
The continuing fallout of the Financial Services Royal Commission and the recent cases which demonstrate that ASIC and APRA appear to remain committed to taking enforcement action in relation to matters referred by the Commissioner;
Government launches cyber security scheme to help SMEs
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The federal government has announced a $26.5-million program aimed at strengthening the country’s cyber security capabilities, particularly within the SME sector.
Under the Cyber Security Skills Partnership Innovation Fund, grants of between $250,000 and $3 million will be provided to improve the quality and availability of cyber security professionals through training.
The fund is part of the $50-million Cyber Security National Workforce Growth Program that forms the federal government’s Cyber Security Strategy 2020.
Eligible activities may include developing and delivering specialist cyber security courses for professionals; retraining programs; professional development; apprenticeships; establishing new internships, cadetships, work experience and staff exchanges; and establishing cyber labs and training facilities.
Mortgage Business
RBA focused on lending, not house prices: Lowe By Malavika Santhebennur 08 February 2021
Governor Philip Lowe has said that the central bank will continue to focus on lending standards and hold discussions with regulators if they were to deteriorate.
Addressing the House of Representatives standing committee on economics on 5 February, the Reserve Bank of Australia (RBA) governor Philip Lowe has reiterated that the central bank would not focus on housing prices.
“As we have previously discussed at these hearings, the RBA does not – and should not – target housing prices,” Mr Lowe said.
“Instead, our focus is on the lending that is used to purchase housing. We want to see lending standards remain strong.”
The financial services regulator is working on “alternative arrangements” for submitting credit licence applications, after identifying a cyber “incident” on one of its servers.