Consumer groups have commented on the exposure draft Corporations Amendment (Design and Distribution Obligations and Product Intervention Powers) Regulations 2018 (Cth) (the Regulations) and explanatory materials.
The following organisations have contributed to and endorsed this submission:
- Consumer Credit Legal Service WA
- Consumer Action Law Centre
- Financial Counselling Australia
- Financial Rights Legal Centre
Our comments relate to the extension of the design and distribution obligations (DADOs) to basic banking products, and the extension of the product intervention powers (PIPs) to funeral expenses insurance, extended warranties and short-term credit. We strongly support the extension of these obligations.
We reiterate our previous submissions that both DADOs and PIPs should apply to all financial products, as defined in the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act). In the alternative, we strongly recommend that DADOs be further extended by regulation to consumer credit, funeral expenses insurance, extended warranties and short-term credit to ensure the obligations appropriately mirror the PIP regime.
Read the full submission here [PDF].
CHOICE and Consumer Action Law Centre also appeared at a Senate Economics Legislation Committee hearing on 31 October 2018 in relation to the Bill. Hearing transcript here [LINK] and response to questions on notice here [PDF].