Changes to CCCFA and CoFI open opportunities

FANZ interim chief executive Tony Dench says it has been a trying time for many consumers as they navigate rising costs of living and uncertain economic times.

The Government is making changes to the CCCFA and contentious Conduct of Financial Institutions (CoFI) legislation.

With the CCCFA, Commerce and Consumer Affairs Minister Andrew Bayly will remove prescriptive affordability requirements for lower risk lending and undertake a more substantive review of the Act, including its penalty and disclosure regime. He says changes will be identified by March/April and be ready by mid-year. 

The Financial Services Council (FSC) says it will work with Bayly and his officials to develop a CCCFA regime providing necessary protections to those consumers who need them, but which do not treat every borrower as vulnerable or incapable of managing their own finances.