CCLSWA welcomes the opportunity to collaborate with other leading consumer advocate groups to provide written submissions to Treasury. The joint submission responds to exposure draft regulations that would require some debt management firms (DMFs) to hold an Australian Credit Licence.
The submission supports the draft regulations but flags that further changes are needed to help ensure that people get high quality, competent advice they can trust.
Some of the recommendations in the joint submission include:
- Introducing a broad best interests duty
- Banning upfront fees
- Extending the ban on unsolicited selling in financial services to DMFs
- Requiring minimum training standards for all DMFs
- Requiring ongoing data collection and publication by ASIC
To read the submission in full and see the full list of recommendations, click here.