FCA submissions to government, regulators and others.
March 2020
Submission to: Australian Banking Association
This submission is in response the Australian Banking Association’s (ABA) Consultation Paper: Use of credit cards for gambling transactions (Consultation Paper).
This submission is in response the Australian Banking Association’s (ABA) Consultation Paper: Use of credit cards for gambling transactions (Consultation Paper).
February 2020
Submission to: Senate Economics Committee
Legislation first proposed by the Federal Government in October 2017 in relation to payday loans and consumer leases must be introduced urgently. People need strong consumer protections when using these high cost and potentially harmful products. The urgent reform needed is to cap the amount that a person can repay at 10% of net income.
Legislation first proposed by the Federal Government in October 2017 in relation to payday loans and consumer leases must be introduced urgently. People need strong consumer protections when using these high cost and potentially harmful products. The urgent reform needed is to cap the amount that a person can repay at 10% of net income.
February 2020
Submission to: Treasury
Joint consumer group submission (led by Consumer Action Law Centre) responding to the consultation about the design of a Compensation Scheme of Last Resort. A CLSR has been the missing piece of the regulatory architecture in financial services.
Joint consumer group submission (led by Consumer Action Law Centre) responding to the consultation about the design of a Compensation Scheme of Last Resort. A CLSR has been the missing piece of the regulatory architecture in financial services.
February 2020
Submission to: Attorney-General's Department
It should go without saying that we support the principle that people should not be subjected to discrimination on the basis of their religion. But we have concerns with the bills in their current form. They have two implications for financial counselling. First, that they would allow people to make statements that would be seen as judgemental. This is contrary to the principles of the financial counselling profession. Second, in relation to employment, the draft laws would allow religious bodies to give preference to members of their own religion.
It should go without saying that we support the principle that people should not be subjected to discrimination on the basis of their religion. But we have concerns with the bills in their current form. They have two implications for financial counselling. First, that they would allow people to make statements that would be seen as judgemental. This is contrary to the principles of the financial counselling profession. Second, in relation to employment, the draft laws would allow religious bodies to give preference to members of their own religion.
January 2020
Submission to: Reserve Bank of Australia
Joint consumer group submission (led by Choice). We argue that Buy Now Pay Later providers are not playing by the same rules as other merchants and this imposes costs on all consumers. We also welcome the RBA's intervention to coordinate regulatory and industry action in relation to managing direct debits and recurring payments. It is ludicrous that consumers still have difficulty in cancelling these deductions.
Joint consumer group submission (led by Choice). We argue that Buy Now Pay Later providers are not playing by the same rules as other merchants and this imposes costs on all consumers. We also welcome the RBA's intervention to coordinate regulatory and industry action in relation to managing direct debits and recurring payments. It is ludicrous that consumers still have difficulty in cancelling these deductions.
January 2020
Submission to: Treasury
Joint consumer group submission supporting the proposal for permanent consumer advocacy body in superannuation. We recommend that Super Consumers Australia be this independent voice.
Joint consumer group submission supporting the proposal for permanent consumer advocacy body in superannuation. We recommend that Super Consumers Australia be this independent voice.
January 2020
Submission to: Australian Small Business and Family Enterprise Ombudsman
We support an inquiry into insolvency practices and the impact on small business. Insolvency can be difficult, costly and unfair for small business. Small business needs access to expert independent free advice to ensure adequate support. The costs of insolvency need to be reduced and the structure simplified.
We support an inquiry into insolvency practices and the impact on small business. Insolvency can be difficult, costly and unfair for small business. Small business needs access to expert independent free advice to ensure adequate support. The costs of insolvency need to be reduced and the structure simplified.
January 2020
The Financial Services Royal Commission recommended improvements in consumer protection for insurance claims handling. We support that recommendation and the draft legislation to implement it.
The proposed changes will ensure that insurance claims are covered under the definition of “Financial Service” in the Corporations Act and improve disclosure when settling an insurance claim. This will be beneficial for people claiming on their insurance policies.
Additional protections are needed in the proposed laws however, to protect people from exploitation, including extending the legislation to include paid claims handling services and life insurance. There should also be additional protections for people settling an insurance claim following a natural disaster.
October 2019
Submission to: Treasury (Financial Services Reform Taskforce)
This package of draft legislation is a direct response to the Financial Services Royal Commission. The draft bills remove the current exemptions for funeral expenses policies from the licensing and conduct regime in the Corporations Act. We also argue that other exemptions for funeral insurance should also be removed from the Life Insurance Act and the Insurance Contracts Act. The submission supports the commencement date of 1 April 2020. The submission also raises concerns about the impact on Aboriginal and Torres Strait policy holders of funeral insurance company ABCF. If this company does not obtain a licence under the new regime, a compensation/redress scheme will be needed for these policy holders. They should not face the loss of past contributions and no future coverage for the costs of their funerals, because of a past legal loopholes and poor drafting.
This package of draft legislation is a direct response to the Financial Services Royal Commission. The draft bills remove the current exemptions for funeral expenses policies from the licensing and conduct regime in the Corporations Act. We also argue that other exemptions for funeral insurance should also be removed from the Life Insurance Act and the Insurance Contracts Act. The submission supports the commencement date of 1 April 2020. The submission also raises concerns about the impact on Aboriginal and Torres Strait policy holders of funeral insurance company ABCF. If this company does not obtain a licence under the new regime, a compensation/redress scheme will be needed for these policy holders. They should not face the loss of past contributions and no future coverage for the costs of their funerals, because of a past legal loopholes and poor drafting.
October 2019
Submission to: Senate Community Affairs Committee
We do not support the proposed expansion of the compulsory cashless debit card to some people on Centrelink payments in the Northern Territory, . We remain concerned that it deprives people of choice which negatively affects their wellbeing and financial capability.
We do not support the proposed expansion of the compulsory cashless debit card to some people on Centrelink payments in the Northern Territory, . We remain concerned that it deprives people of choice which negatively affects their wellbeing and financial capability.
October 2019
Submission to: Financial Services Reform Taskforce, Treasury
We support DADOs applying as broadly as possible to reduce the number of loopholes in the law (a problem called out in the Financial Services Royal Commission). For example, DADOs should apply to buy now, pay later products. This submission supports the extension of DADOs to basic bank accounts. We argue that proposed exclusions for credit provided for business purposes and pawnbrokers should be removed, so that they are also included in the regime.
We support DADOs applying as broadly as possible to reduce the number of loopholes in the law (a problem called out in the Financial Services Royal Commission). For example, DADOs should apply to buy now, pay later products. This submission supports the extension of DADOs to basic bank accounts. We argue that proposed exclusions for credit provided for business purposes and pawnbrokers should be removed, so that they are also included in the regime.
October 2019
Submission to: Treasury
The broking industry needs wholesale reform if it is to act in the best interests of people taking out home loans. We support the imposition of a best interests duty, which should be expanded to all financial products, and the requirement to prioritise needs. There need to be stronger penalties for misconduct, the establishment of record keeping obligations and the loophole about the way a broker is defined needs to be closed. The root cause of so many problems in the mortgage broking industry is remuneration and wholesale reform is needed in this area: removing volume-based and campaign-based commissions, banning non-volume based bonuses, a prohibition on recommending excessive mortgages, ensuring that clawback arrangements encourage switching, defining conflicted remuneration, ensuring that IT software and support systems deliver fair results and ensuring that education and training events are genuine. These reforms would be pro-competitive so that brokers would be forced to scan the market and help people find a loan that best suits their needs. Although the prohibition of upfront and trail commissions are not within the scope of this proposed legislation, the consumer movement reiterates its support for these recommendations from the Financial Services Royal Commission.
The broking industry needs wholesale reform if it is to act in the best interests of people taking out home loans. We support the imposition of a best interests duty, which should be expanded to all financial products, and the requirement to prioritise needs. There need to be stronger penalties for misconduct, the establishment of record keeping obligations and the loophole about the way a broker is defined needs to be closed. The root cause of so many problems in the mortgage broking industry is remuneration and wholesale reform is needed in this area: removing volume-based and campaign-based commissions, banning non-volume based bonuses, a prohibition on recommending excessive mortgages, ensuring that clawback arrangements encourage switching, defining conflicted remuneration, ensuring that IT software and support systems deliver fair results and ensuring that education and training events are genuine. These reforms would be pro-competitive so that brokers would be forced to scan the market and help people find a loan that best suits their needs. Although the prohibition of upfront and trail commissions are not within the scope of this proposed legislation, the consumer movement reiterates its support for these recommendations from the Financial Services Royal Commission.
September 2019
Submission to: Senate Community Affairs References Committee
This is a joint submission from FCA and the State/Territory financial counselling associations. Fairness should be the underpinning principle in decisions about the level of income support payments. We support an urgent increase in Newstart by at least $75 per week to ensure people are more likely to be able to keep a roof over their heads and pay the household bills. We support an independent review of the adequacy of income support payments and the introduction of an independent body to set such payments to ensure they remain adequate into the future.
This is a joint submission from FCA and the State/Territory financial counselling associations. Fairness should be the underpinning principle in decisions about the level of income support payments. We support an urgent increase in Newstart by at least $75 per week to ensure people are more likely to be able to keep a roof over their heads and pay the household bills. We support an independent review of the adequacy of income support payments and the introduction of an independent body to set such payments to ensure they remain adequate into the future.
September 2019
Submission to: Senate Community Affairs References Committee
We do not support the continuation of the Centrelink automated debt collection process (robodebt). We remain concerned that debts claimed are inaccurate and people who may be experiencing vulnerability are paying debts they do not owe. Centrelink must be sure that a debt is owed before it commences any debt collection process and has the onus of proof. The debt collection process must be designed to be fair and take extra care in all circumstances as it is likely that the person receiving Centrelink is in financial difficulty, disadvantaged or vulnerable.
We do not support the continuation of the Centrelink automated debt collection process (robodebt). We remain concerned that debts claimed are inaccurate and people who may be experiencing vulnerability are paying debts they do not owe. Centrelink must be sure that a debt is owed before it commences any debt collection process and has the onus of proof. The debt collection process must be designed to be fair and take extra care in all circumstances as it is likely that the person receiving Centrelink is in financial difficulty, disadvantaged or vulnerable.
September 2019
Submission to: Treasury
This joint consumer group submission responds to proposed legislation to include hardship flags in credit reports. We have long opposed this approach. The submission argues that proposed retention timeframes are too long, that hardship flags should only be visible to credit providers that are making responsible lending assessments and that hardship information should not be incorporated into credit scores.
This joint consumer group submission responds to proposed legislation to include hardship flags in credit reports. We have long opposed this approach. The submission argues that proposed retention timeframes are too long, that hardship flags should only be visible to credit providers that are making responsible lending assessments and that hardship information should not be incorporated into credit scores.
August 2019
Submission to: ASIC
We have welcomed ASIC’s decision to review its guidance on internal dispute resolution for financial services providers. We support making the guidance on internal dispute resolution enforceable. We recommended that fairness and good industry practice are considered when financial firms are responding to complaints. We also supported a 30 day time limit to respond to a complaint.
We have welcomed ASIC’s decision to review its guidance on internal dispute resolution for financial services providers. We support making the guidance on internal dispute resolution enforceable. We recommended that fairness and good industry practice are considered when financial firms are responding to complaints. We also supported a 30 day time limit to respond to a complaint.
August 2019
Submission to: ASIC
We support the approach by ASIC on the implementation of the product intervention power. In legislating this power, the Parliament has recognised the need for ASIC to prevent or halt significant consumer detriment when it is identified.
We support the approach by ASIC on the implementation of the product intervention power. In legislating this power, the Parliament has recognised the need for ASIC to prevent or halt significant consumer detriment when it is identified.
July 2019
Submission to: ASIC
We support ASIC using its product intervention power to prohibit short term lending models (the Cigno model). The short term lending model currently being used by Cigno causes significant harm to people and we urge ASIC to intervene urgently.
We support ASIC using its product intervention power to prohibit short term lending models (the Cigno model). The short term lending model currently being used by Cigno causes significant harm to people and we urge ASIC to intervene urgently.
July 2019
Submission to: Australian Financial Complaints Authority (AFCA)
June 2019
Submission to: Australian Banking Association
Submission calls for the Banking Code of Practice to include among other changes: further principles and specific provisions to better protect vulnerable people; to more imaginatively set out critical information that people need to know instead of relying on the “fine print”; training for staff to help them ask direct questions about relevant personal characteristics that leave a person more vulnerable; and providing actual access in remote areas, such as pop-up banking.
Submission calls for the Banking Code of Practice to include among other changes: further principles and specific provisions to better protect vulnerable people; to more imaginatively set out critical information that people need to know instead of relying on the “fine print”; training for staff to help them ask direct questions about relevant personal characteristics that leave a person more vulnerable; and providing actual access in remote areas, such as pop-up banking.
June 2019
Submission to: Department of Agriculture
Submission calls for the RFC Service to work much more closely with generalist financial counselling services because of the many similarities in the work of both roles. Possible benefits include better communication and professional development and ultimately better client outcomes.
Submission calls for the RFC Service to work much more closely with generalist financial counselling services because of the many similarities in the work of both roles. Possible benefits include better communication and professional development and ultimately better client outcomes.
May 2019
Submission to: Australian Securities and Investments Commission
Submission calls for AFCA to make it explicit that RG209 will be a relevant factor in resolving disputes about responsible lending; that compliance with RG209 should be a key commitment in industry codes that deal with lending under the National Credit Act; that the required inquiry and verification steps be set out in RG209; that these required steps not be reduced for any credit products; and that credit providers should be audited regularly.
Submission calls for AFCA to make it explicit that RG209 will be a relevant factor in resolving disputes about responsible lending; that compliance with RG209 should be a key commitment in industry codes that deal with lending under the National Credit Act; that the required inquiry and verification steps be set out in RG209; that these required steps not be reduced for any credit products; and that credit providers should be audited regularly.
May 2019
Submission to: Treasury
Submission recommends that kinship be included as a specific category in legislation as an option for a binding death benefit nomination. This area of superannuation is complex, and binding death benefit nominations can be ruled invalid for a number of reasons. People of Aboriginal and Torres Strait Islander descent are very clear about their kinship relationships but are not able to choose their appropriate beneficiaries because such relationships are not legally recognised.
Submission recommends that kinship be included as a specific category in legislation as an option for a binding death benefit nomination. This area of superannuation is complex, and binding death benefit nominations can be ruled invalid for a number of reasons. People of Aboriginal and Torres Strait Islander descent are very clear about their kinship relationships but are not able to choose their appropriate beneficiaries because such relationships are not legally recognised.
April 2019
Submission to: The Treasury
March 2019
Submission to: Australian Senate
February 2019
Submission to: The Treasury Department
February 2019
Submission to: The Treasury
January 2019
Submission to: Department of Communications and the Arts
January 2019
Submission to: Customer Owned Banking Association
Independent Review of the Customer Owned Banking Code of Practice January 2019
Independent Review of the Customer Owned Banking Code of Practice January 2019
January 2019
Submission to: Financial Services Council
November 2018
Submission to: The Treasury
November 2018
Submission to: Australian Senate
This submission addresses the capacity and capability of the financial counselling sector to assist people experiencing financial stress. A separate submission was made in relation to credit and financial services targeted at Australians at risk of financial hardship.
This submission addresses the capacity and capability of the financial counselling sector to assist people experiencing financial stress. A separate submission was made in relation to credit and financial services targeted at Australians at risk of financial hardship.
November 2018
Submission to: Australian Senate
This submission addresses the terms of reference questions in relation to credit and financial services targeted at Australians at risk of financial hardship. A separate submission covers the capacity and capability of the financial counselling sector (TOR (c)) to assist people experiencing financial stress.
This submission addresses the terms of reference questions in relation to credit and financial services targeted at Australians at risk of financial hardship. A separate submission covers the capacity and capability of the financial counselling sector (TOR (c)) to assist people experiencing financial stress.
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
October 2018
Submission to: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
August 2018
Submission to: The Treasury
July 2018
Submission to: Australian Securities Investments Commissions
July 2018
Submission to: Royal Commission into the Banking, Superannuation and Financial Services Industry
July 2018
Submission to: The Treasury
June 2018
Submission to: Attorney General's Department
May 2018
Submission to: The Treasury
April 2018
Submission to: Australian Securities and Investments Commission
This submission provides a response to ASIC's draft Regulation Guide 139 and its oversight of the Australian Financial Complaints Authority.
This submission provides a response to ASIC's draft Regulation Guide 139 and its oversight of the Australian Financial Complaints Authority.
April 2018
Submission to: Productivity Commission
February 2018
Submission to: Senate Legal and Constitutional Affairs Legislation Committee
A submission that supports the changes proposed by the Exposure Draft of the Bankruptcy Amendment (Debt Agreement Reform) Bill 2018 and proposes further reforms.
A submission that supports the changes proposed by the Exposure Draft of the Bankruptcy Amendment (Debt Agreement Reform) Bill 2018 and proposes further reforms.
February 2018
Submission to: The Treasury
January 2018
Submission to: Insurance Council of Australia
January 2018
Submission to: Attorney-General’s Department
A response to the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, supporting the reduction of the bankruptcy period from 3 years to 12 months and some ongoing obligations for bankrupts and proposing other amendments.
A response to the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, supporting the reduction of the bankruptcy period from 3 years to 12 months and some ongoing obligations for bankrupts and proposing other amendments.
December 2017
Submission to: Commercial Radio Australia
December 2017
Submission to: Free TV Australia
December 2017
Submission to: Australian Subscription Television and Radio Association
December 2017
Submission to: The Treasury
November 2017
Submission to: Australian Competition and Consumer Commission
November 2017
Submission to: The Treasury
November 2017
Submission to: Australian Securities and Investments Commission
October 2017
Submission to: The Treasury
September 2017
Submission to: Australian Competition and Consumer Commission
September 2017
Submission to: The Productivity Commission
September 2017
Submission to: Victorian Commission for Gambling and Liquor Regulation
July 2017
Submission to: The Treasury
March 2017
Submission to: Senate Standing Committees on Community Affairs
January 2014
Submission to: The Treasury Department
A pre budget submission calling for continued funding for financial counselling.
A pre budget submission calling for continued funding for financial counselling.