States concede consumer credit powers

The Australian government will seek agreement from state governments that the latter refer their regulatory powers over aspects of financial services to the centre.

The Financial Review reported that on the agenda for tomorrow's meeting of the Council of Australian Governments is a plan for the central government to take control of setting rules in relation to non-bank lending, mortgage broking and margin lending.

This would presumably also extend to consumer credit generally and encompass the consumer credit code.

Efforts by states to update and harmonise laws relating to mortgage broking have underscored the disjointed approach of state governments over their approach to the sector.

The Productivity Commission late last year urged transfer of regulatory responsibility over mortgage brokers to Canberra "without further review".