Margin move

THE Federal Government has released new laws to regulate margin lending following the collapse of investment companies such as MFS and Storm Financial.

The move follows margin loans that resulted in ‘mum and dad investors’ losing their homes. Minister for Superannuation and Corporate Law Nick Sherry says margin lending would be added to the Corporations Act as a financial product.

Margin lending is not currently regulated in Australia. The initiative is part of a plan to modernise Australia’s financial regulation for the 21st century.

"There have been several high-profile examples of margin lending arrangements that have caused financial pain to a wide range of Australians," says Sherry.

Lenders will first of all be required to hold an Australian Financial Services Licence and work under the regulations of the Australian Securities and Investments Commission.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Operating the board collaboratively, efficiently and securely
Partner Content
'Digitisation' and 'digitalisation' are two words that are frequently t...
OnBoard
Advertisement

Related Stories

Jumbo to expand UK presence with $32m acquisition of StarVale

Jumbo to expand UK presence with $32m acquisition of StarVale

Digital lottery service provider Jumbo Interactive (ASX: JIN) has e...

Centuria Capital secures West Village retail for $202m

Centuria Capital secures West Village retail for $202m

Centuria Capital Group (ASX: CNI) has snared an emerging inner-city...

Supply chain woes sees Kogan profit dive 58 per cent

Supply chain woes sees Kogan profit dive 58 per cent

Despite delivering record sales revenue for the first half of FY22,...

How Fable Food Co founder Michael Fox tricked himself back into business after failed venture

How Fable Food Co founder Michael Fox tricked himself back into business after failed venture

After his online footwear retail startup Shoes of Prey failed follo...