The separate state governments throughout Australia have agreed in principle for the regulatory responsibility surrounding consumer protection for mortgage credit and advice, and margin lending to be taken on by the Federal Government.
The issue was agreed upon at the Council of Australian Governments (COAG) meeting held earlier in the week.
While details of the approach to regulation were not revealed, the summit constructed a timetable over which the various components would be completed for the formulation of the regulatory framework.
For both areas the next significant date in the process is April 30, 2008, by which time the Productivity Commission's review of the consumer policy framework should be completed.
The Ministerial Council on Consumer Affairs' consideration of the Productivity Commission's recommendations are due to be completed by May 23. COAG's final agreement is to be completed in October.
The resolutions from the meeting held no surprises for the Mortgage & Finance Association of Australia (MFAA) chief executive Phil Naylor.
"We support the decision but we think that the content of the legislation they're proposing should be largely based on the draft legislation that the states have already published for public comment," he said.
Naylor revealed his organisation had already been in discussions with Minister for Superannuation and Corporate Law Nick Sherry to see if the MFAA could contribute to the process.
The announcements were also welcomed by St George general manager margin lending and direct shares David Curry.
"Anything to improve consumer protection and ensure uniformity across the industry and bringing the playing field to the highest common denominator and not the lowest is always a good thing," he said.
St George too was willing to participate in the process if required Curry said.
