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ASIC steps up the game on Responsible Lending

NewsGreg Ashe

ASIC steps up the game on Responsible Lending

Despite having remarked in earlier years that it lacks the resources to take on the "big end of town", ASIC did, yesterday, release a statement that it has taken Bank of Queensland to task over its loan assessment practices.

In a press release yesterday ASIC articulated its concerns that BoQ was using the Henderson Poverty Index as a benchmark for assessing the living expense needs of consumer borrowers, rather than asking them about their actual living expenses.

Since ASIC's RG209 was released in early 2010, QED Risk Services has said that all industry participants need to do their own maths and use real client figures.  This was validated by ASIC with the releases of its Report 262 in November 2011 and further - if not more outspokenly - with the revision of RG209 in November 2014.

Yesterday's press release is further proof that ASIC expects credit industry participants to conduct proper analysis of its clients and not rely on someone else to do the leg work on the maths.

If you have any questions about serviceability, responsible lending, other credit licence obligations or just compliance in general, please free to give our friendly and knowledgeable team a call on 1300 817 662.

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