Many of you will have already seen the news somewhere that ASIC's RG209 was changed on 5 November last year. There was a lot of hype about it so, if you did miss it, you must have been either on holiday or working way too hard.
The main thing that QED Risk Services is keen to point out is that we don’t believe the revisions to the Guide really represent anything new.
When the first version of the guide came out in early 2010, the QED team interpreted it in the way in which it is now written and started telling brokers that they must do their own servicing calculations with real client numbers. That’s because, here at QED Risk Services we are sad, sad people who understand how to speak “regulator”.
ASIC’s original RG209 was written in a very “Yes Minister” style of language because ASIC was well aware that its opinions were not legally binding per se. However, last year there was a case that went before the courts where the court got to make its interpretation of the Responsible Lending provisions of the NCCP Act.
When the court made its decision, which now becomes law. Now that it really is law, ASIC feels more comfortable to state its position more plainly. So the position on responsible lending has never changed, it’s just that ASIC has now stated its position in plainer English.
So whilst this was all news to the media and caused some outrage about ASIC shifting the goalposts again, at least we know that long-term QED followers were not at all excited about it – we’ve been telling you for years!