Financial Services Federation executive director Lyn McMorran said, if consumer credit contracts were to be covered by the Financial Services Legislation Amendment Bill, the industry deserved a representative in the group.
She had previously argued that consumer credit contracts should be excluded from the scope of the review because they were already covered by the Credit Contracts and Consumer Finance Act, which includes consumer protections.
She said having the contracts covered by the Financial Services Legislation Amendment Bill as well meant unnecessary strain on the industry and consumers.
McMorran said that point had been acknowledged, but the double-up remained in the bill that is due to be presented to parliament next month.
If no change was made, she said the working group needed to be altered to have a representative from the consumer credit industry.
It also does not include representatives from mortgage or insurances.
“We have a problem because there is now no representative from the credit consumer advisory sector on the committee. This is not to criticise the calibre or professionalism of those who have been selected for the committee. But if consumer credit contracts are to be left in the Act, they should be represented on the committee.”
She said credit providers had not taken any action to register under the Financial Advisers Act and had not been penalised. That showed they should be carved out of the legislation, she said.
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