Senator the Hon. Nick Sherry, Minister for Superannuation and Corporate Law, has addressed the Mortgage and Finance Association of Australia’s (MFAA) National Convention today on the Gold Coast, praising the Association for its involvement in shaping new consumer protection and consumer credit laws, and for elevating the role and standards of the industry.

Addressing the conference, Senator Sherry said: “I value the important work that the MFAA plays in elevating the role and standards of your industry. And I particularly appreciate your focus on promoting professionalism for your members, and excellence for the benefit of your customers.”

Senator Sherry also recognised the advisory role the MFAA played on the development of the draft Consumer Credit Reform Package, as a member of the Industry Consultation Group.

“MFAA also made submissions to both the Green Paper on Financial Services and Credit Reform in June 2008 and, more recently, the exposure draft of the National Consumer Credit Protection Bill 2009,” said Senator Sherry.

The Federal Government is in the process of reforming Australia’s consumer credit system - which includes introducing legislation covering mortgages, credit cards, and some investment lending, as well as covering brokers and credit advisors.

Senator Sherry also highlighted the fact that there is currently no nationally consistent legislation protecting consumers seeking credit in Australia.

“To overcome these problems, we are introducing the National Credit Code - one single, national, standard system to regulate consumer credit,” said Senator Sherry

“This will be a decisive moment. For the first time, Australia will have one, standard, national regime which applies equally to all credit consumers and all credit providers, right across the nation.”

As part of the National Consumer Credit Protection Bill, a national licensing regime and responsible lending requirements will be put into place. In its submission on the Bill draft, the MFAA called on the Government to keep licensing procedures as simple as possible, so as not to drive smaller operators out of mortgage broking.

“The responsible lending requirements will help to sustain the integrity of Australia’s financial system - particularly in these times of financial instability. Just as responsible lending supports economic growth, imprudent lending can not only harm consumers, but - as we saw in the United States sub-prime crisis - can damage the economy,” said Senator Sherry.

Senator Sherry’s entire speech can be viewed here