Important information - Produced for the use of AFSL advisers only. Products under the Colonial Geared Investments brand are provided by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945, and administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec), a Participant of the ASX Group and the Sydney Futures Exchange. This email has been prepared without taking account of the objectives, financial and taxation situation or needs of any particular individual. For this reason, you should, before acting on the information in this video, consider the appropriateness of the information, having regard to your objectives, financial and taxation situation and needs, and if necessary seek appropriate professional advice. This information summary is not legal advice and is not financial product advice and is not to be relied upon by any party external to Colonial Geared Investments. Any such party should seek their own legal advice regarding the effect of the amendments to the Corporations Act 2001 (Cth) relating to the regulation of margin lending facilities and the National Consumer Credit Protection Act 2009.
Over the coming months, significant changes are taking place within the Australian financial services industry. Three important regulatory changes that will impact Colonial Geared Investments and our clients include:
- Unfair contracts and terms (Trade Practices Amendments – Aust. Consumer Law Bill 2009)
- Margin lending regulations (Amendments to the Corporations Act 2001)
- Consumer credit (the new National Consumer Credit Protection Amendment Act 2010)
In an effort to remain at the forefront of responsible lending, we have worked tirelessly to ensure we not only meet our obligations under the new legislation, but also assist our clients in meeting their obligations. Most importantly, we are building the foundation for a stronger and better business.
Many of the changes that we’ll be implementing over the coming months will help to improve risk management, build confidence and promote transparency.
We’ll see these benefits realised in many, different ways – for example – more accurate data for clients, faster and better ways to communicate with all clients, as well as improved ability to measure and monitor risk due to improved client tools.
Overall, the customer experience will also improve due to business processes being streamlined – for example – the bank will be able to react more quickly to customer needs
Timeline of when changes take effect.
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ADVISERS
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CLIENTS
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Your Dealer Group must apply for an AFS licence variation otherwise you will not be able advise on margin lending post 1 July 2010. Dealer groups (or advisers) using our CALIA+ product must register for an ACL otherwise you will not be able to advise on CALIA+ post 1 July 2010.
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Introduction of a ‘Suitability Test’ for new clients to assess your understanding and suitability for a margin loan.
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Ensure you provide your clients with our new Terms & Conditions and application forms from 1 July 2010.
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New terms and conditions and application forms come into effect on 1 July 2010.
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Our margin call timeframes have changed. We have also introduced a Maximum Gearing Ratio. Learn more>
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Margin call timeframes have changed. We have also introduced a Maximum Gearing Ratio. Learn more>
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We will now also notify your clients directly via email if they are in margin call. Please ensure we have your clients’ email address.
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Whilst we will still notify your adviser, we will also notify you directly if you are in margin call.
Please ensure we have your email address.
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More Information
- Visit the ASIC website for more information on Margin Lending Regulations and Licensing
- Visit the ACCC website for more information on UCT
- We have compiled frequently asked questions to help you better understand the impacts of the new regulations
- For more information on our Margin Loan, click here.
- For more information on CALIA+, click here.