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Responsible Lending and Borrowing Summit

Towards better consumer outcomes

4 – 5 March 2019 | Radisson Blu Plaza, Sydney

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Early bird rate expires 15 December 2018

overview

The Responsible Lending & Borrowing Summit will be in its third year during a significant and an un-precedented year for financial services. With the Royal Commission into Misconduct in the Banking, Superannuation and Financial Service Industry Final Report due in February 2019, the summit will provide an opportunity to look closely at the royal commission’s recommendations whilst reflecting on lessons learnt.

2019 will sharpen focus towards better consumer outcomes and with the challenges ahead with open banking and comprehensive credit reporting implementation our financial institutions have one the toughest years ahead. With the level of scrutiny at an all-time high, greater digitisation and open banking will only further highlight the significance of trust for institutions.

The summit will provide a unique opportunity to reflect on the lessons learnt whilst creating necessary dialogue to pave the way towards better consumer outcomes.

sponsors

agenda

8:20 am

Registration and coffee

8:50 am

OPENING | Opening remarks from the Chair - Day 1

Jaime Lumsden-Kelly, Solicitor Director, The Fold Legal

THE ROYAL COMMISSION - ISSUES THAT WILL CONTINUE TO IMPACT

9:00 am

The Royal Commission has unearthed extremely important information about financial illiteracy in Australia. While Australia’s financial literacy rate is higher than the average rate of OECD countries, there is still a substantial number of people who lack adequate financial literacy and who remain vulnerable to predatory financial practices. The impact of financial illiteracy on responsible lending and borrowing long after the Royal commission is complete
is troublesome and much more needs to be done from a public policy perspective. Professor Guest will explore the issue and propose some solutions.

9:30 am

The Final Report will be laced with recommendations that will continue to impact the industry for years to come and as reforms are embraced the organisations on the frontline will be the first to grasp the success of those reforms. Whatever the Royal Commission recommends, the challenges ahead will require immediate and considerable effort to achieve better consumer outcomes going forward.

INDUSTRY RESPONSE

CULTURE, CONDUCT & COMPLIANCE

10:30 am

The Hayne Royal Commission has raised several policy issues and has clearly identified culture and conduct coupled with short termism as being major issues for the industry, leaving consumers vulnerable to a system that should have been working for them.

Should we see the emergence of new roles for ASIC and APRA as well as the emergence of new compliance frameworks for the institutions that they regulate to achieve the anticipated
recommendations?

11:15 am

Networking and refreshment break

11:45 am

Recent ASIC commentary coupled with testimony in the Royal Commission have highlighted a stark reality – that the Credit Act contains a black and white requirement to assess the financial circumstances of an individual based on their specific and individual circumstances. However, what this fails to address is that many statistical models exist, including benchmarks and credit scorecards, that come remarkably scientifically close to approximating the circumstances of the individual. This session will look at how the industry, including regulators, should work together to match legal requirements with practical reality.

12:15 pm

Credit licensees must comply with the responsible lending conduct obligations in Ch 3 of the National Consumer Credit Protection Act 2009. Credit licensees must not enter into a credit contract with a consumer, suggest a credit contract to a consumer or assist a consumer to apply for a credit contract if the credit contract is unsuitable for the consumer. As a credit licensee, you must decide how you will meet the responsible lending obligations.

ASIC’s RG 209 sets out clear expectations for compliance.

  • 1. Make reasonable inquiries about the consumer’s financial situation, and their requirements and objectives;
  • Take reasonable steps to verify the consumer’s financial situation; and
  • Make a preliminary assessment (if you are providing credit assistance) or final assessment (if you are the credit provider) about whether the credit contract is ‘not unsuitable’ for the consumer (based on the inquiries and information obtained in the first two steps) In addition, if the consumer requests it, you must be able to provide them with a written copy of the preliminary assessment or final assessment (as relevant). (ASIC website)

We will discuss why different interpretations will arrive at very different outcomes and why this is a major issue for the industry. How do we get an industry as diverse as financial services to agree on a set of rules or one size fits all regulation, when there are clear
differences on how each individual lender approaches those regulations? Where is the competitive advantage here and how do we get them to comply?

1:00 pm

Lunch and networking break

TOWARDS STRONGER & BETTER REGULATORY POWERS

1:45 pm

The Federal Government has announced that it proposes to strengthen ASIC’s powers, and to increase the severity of penalties (civil and criminal) that can be imposed on individuals and corporations, in line with the ASIC Enforcement Review Taskforce’s recommendations. Dr Nehme will talk us through what the new powers and sanctions tools will enable the regulator to do.

VERIFICATION, OPEN BANKING & CCR - TOWARDS BETTER TRANSPARENCY & ACCURACY

2:10 pm

The Royal Commission has highlighted the issues with inquiries not being properly conducted for those applying for credit. and Non-disclosure is also a huge issue for the industry. Open Banking is being heralded as the answer to these issues with the greater level of accuracy and access it allows to conduct proper and real-time assessments. We explore the opportunities the access to data will open up for the lender and borrower alike.

2:30 pm

Open banking reform will empower consumers and financial institutions alike to make better decisions about the risks they are taking and with whom. Making sense of the useful data and applying it to a process to assess case by case will require technology and analysis to get right. With Comprehensive Credit Reporting we can expect our lenders to benefit from positive reporting to arrive at better consumer outcomes, however, preparing consumers to understand
their own data should be the number one financial literacy task going forward. How are our institutions preparing for this?

3:15 pm

Networking and refreshment break

CUSTOMER ADVOCACY – EMPOWERING CONSUMERS IN HARD TIMES

3:45 pm

  • Why ensuring the consumer understands their rights prior to declaring bankruptcy matters
  • Consumer actions against brokers

4:15 pm

Under the NCCP substantial hardship is not defined, and ASIC’s RG 209 has stated that the meaning of substantial hardship will develop and become clearer as cases come before the courts and judgments are handed down. The regulator has also indicated that consumers should be able to meet a credit contract’s obligations from income rather than equity in an asset. Under the NCCP, it is presumed that, if a consumer must sell their principal place of residence to meet their financial obligations under the credit contract then this constitutes substantial hardship. Consequently, if a consumer establishes that they could only meet the repayments by selling their home, then the onus is on the credit assistance provider to establish that the credit contract is not suitable. Will the Hayne Royal Commission determine a clear line of demarcation for substantial hardship and can we expect clear recommendations that will help develop better policy around this very significant issue.

5:00 pm

Closing remarks from the Chair

5:10 pm

Networking drinks

8:50 am

OPENING | Opening remarks from the Chair

9:05 am

ADDRESS | Small Business and Family Enterprise Ombudsman

9:35 am

  • An update on how AFCA is now managing the EDR’s after its first quarter of operation
  • Response to Royal Commission Final Report

Q & A DISCUSSION

10:30 am

Networking and refreshment break

THE MORTGAGE MARKET

11:00 am

Speculation about loans due to mature from interest only periods that will struggle to be refunded under the current guidelines issued by APRA is mounting. In October 2018 the prudential regulator issued a report stating that there has been a surge in loans approved outside of tougher lending standards. What will happen to many of these loans that come into maturity between 2018-22 that took advantage of interest only, that may now struggle with P&I and not meet the current lending criteria?

11:30 am

While sites like RateCity are already becoming more involved in the education and filtering process, there is large opportunity to play a bigger role in the home loan journey in the early stages to help customers make informed decisions. As an intermediary in the path to purchase, sites like RateCity can greatly aid lender’s responsible lending obligations, like a
filter. It does, however, require a paradigm shift in the relationship between lenders and intermediaries today, the exchange of data and an element of trust to succeed. With Product Suitability Reform on the cards lenders need to review their processes and work with key players to achieve this.

12:00 pm

  • Looking at the impact online real estate platforms will have on the industry.
  • What that means for the mortgage lenders.

12:30 pm

What lays ahead for broking post the Hayne Royal Commission? Will the industry need reinvention and will the introspection lead to a more robust and sound model that works? In anticipation of the worst-case scenario the way ahead will require considerable support from brokers who wish to stand by and transform their businesses.

1:15 pm

Lunch and networking break

PRODUCT SUITABILITY REFORMS & INTERVENTION POWERS

2:00 pm

The Design and Distribution Obligations and Product Intervention Powers Bill (Product Design and Distribution Bill) was introduced to the Australian Government into Parliament on 20 September 2018.

The draft legislation will impose greater responsibility for product design and appropriate distribution on the issuers and distributors of financial products. The Australian Securities and Investments Commission (ASIC) will also be given significant intervention powers to regulate or ban potentially harmful financial and credit products where there is a risk of significant consumer detriment. The 2015 Financial System Inquiry (FSI) highlighted several issues with the current consumer disclosure regimes for financial products. We explore how the new legislation will impact on the industry.

BREACHES, ENFORCEMENTS & PROSECUTIONS

2:30 pm

INSIGHTS | Recent breaches

Elise Ivory, Partner, Dentons

3:30 pm

Closing remarks from the Chair

3:40 pm

END OF CONFERENCE

pricing

Packages Price
Package(Two Days)$2495$2295+GSTEarly BirdEarly Bird
Packages Price
Package(Two Days)$1395$1295+GSTEarly BirdEarly Bird
  • Early bird rate expires 15 December 2018

speakers

Christine Cupitt

Executive Director, Policy, Australian Banking Association

Philip Field

Lead Ombudsman, Banking & Finance, AFCA

Jo McKinstray

Customer Advocate, ANZ

Gerard Brody

CEO, Consumer Action Law Centre, Victoria

Jaime Lumsden-Kelly

Solicitor Director, The Fold Legal

Dr Marina Nehme

Senior Lecturer, UNSW Australia

Professor Ross Guest

Professor of Economics and Dean Learning & Teaching, Griffith Business School, Griffith University & Adjunct Professor, the Australian and New Zealand School of Government

Greg Ashe

Director, QED Risk Services

Tim Donahoo

Head of Lending Operations, Mortgage Choice

Suanne Russell

Practice Leader Business Lending, Westpac

Damir Cuca

CEO & Founder, Basiq

David Grafton

Consumer Credit Risk Adviser

Andrea Beatty

Partner, Piper Alderman

Josh Mennen

Principal Lawyer, Maurice Blackburn Lawyers

Lachlan Edwards

Managing Lawyer, Consumer Action Law Centre

Greg Dickason

CTO International, CoreLogic

Daniel Oh

Group Legal Counsel, Connective Broker Services

Matthew Ellis

Partner, North Rose Fulbright

Elise Ivory

Partner, Dentons

Tony Coburn

Head of Banking Regulatory Australia, Herbert Smith Freehills

Paul Marshall

CEO, RateCity

when & where

04 - 05 Mar 2019

Radisson Blu Plaza Hotel Sydney
27 O’Connell Street
Sydney NSW 2000
Phone: (02) 8214 0000

Book Accommodation with Lido Group
For your convenience Lido Group will manage your accommodation needs. Click here or call on 02 8585 0808.

contact

Still have a question?

Veronique Henrisson
Conference Producer
+61 (02) 9080 4054
Veronique.Henrisson@informa.com.au

Andrew Sinkovich
Sponsorship Manager
+61 (02) 9080 4008
Andrew.Sinkovich@informa.com.au

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