Margin Loans proposed tighter margin lending regulation

Nigel Ward · 7th May, 2009

Bring on the nanny state. Heaven forbid that people should take responsibility for their own actions!

Ridiculous.

Mr Sherry said yesterday taking out equity on a family home was a key area of interest to the Government.
"One area where we have had a high level of concern has been where people have been advised to take equity out of their family home and then to use this debt to leverage into buying shares through a margin loan.

"This double-debt trap, with a home as security, is of serious concern," he said.

"Under our new responsible margin lending laws the lender will be required to assess a person's true loan-to-value ratio
"This means the lender can no longer assume the money brought to the table is not itself debt, a major new improvement" that would reduce the risk of people losing their homes.
Properly geared margin lending, backed by full disclosure, had a place, but the Rudd Government would not tolerate ordinary Australians being misled into grossly inappropriate margin loans that could cost a family everything they owned, including their home, he said.

Under the new laws, lenders will be regulated by the Australian Securities and Investments Commission and be required to hold an Australian Financial Services Licence, be members of low-cost external dispute bodies, clearly disclose fees and commissions before lending, and lend under a tailored margin-lending-specific set of responsible lending obligations.
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AsxBroker · 7th May, 2009

Ruddy government...

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Margin Loans proposed tighter margin lending regulation

Nigel Ward Well-Known Member

AsxBroker Well-Known Member

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Margin Loans proposed tighter margin lending regulation

Nigel Ward Well-Known Member

AsxBroker Well-Known Member

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