ASIC Consultation Paper 354: Relief for simple arrangements following a hardship notice
The Australian Investments and Securities Commission’s (ASIC) Class Order 14/41 is due to expire in March 2022. Consumer organisations recommend that ASIC allows this to happen.
This instrument no longer serves a regulatory purpose in light of the major reforms that have taken place in consumer credit reporting. We believe the continued operation of CO 14/41 will create confusion in a regulatory area that is already extremely complex and confusing for all stakeholders.
The continued operation of CO 14/41 will have a detrimental impact on consumers, in particular causing harm for consumers that need a notification in writing of the terms of any hardship arrangements they have agreed to, even if they are for less than 90 days.
The Instrument no longer addresses an identified issue and extending it will have a detrimental impact on consumers (and will continue to do so beyond 1 July 2022)
Read the full submission (PDF).220106_Submission_CP354_Simple Arrangements_FINAL