ASIC may monitor margin lending and finance brokers

A policy paper on the increased regulation of margin lending is in the works from the Australian government, though the details of any proposals at this stage are not clear.

The Australian reported that Treasury was seeking responses to a green paper detailing a commonwealth takeover of regulation over aspects of the troubled financial services sector.

This may include margin lending and also mortgage broking.

The newspaper reported the green paper canvasses an option of setting up a new regulatory regime to cover margin lending. Another option is to include margin lending as a financial service under the Corporations Act, which brings it under the administration of ASIC.

ASIC would also be responsible for licensing finance brokers, and "hard-selling non-deposit-taking lenders" according to the newspaper.