The Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009, if passed, will require margin lenders and advisers to obtain a licence and be subject to supervision and enforcement by ASIC. It will also give borrowers access to free external dispute resolution services where they have a dispute with their provider.

ASIC’s Consultation paper 112 Dispute resolution requirements for consumer credit and margin lending ( CP 112) explains how ASIC proposes to apply the dispute resolution requirements for margin lenders and those who provide advice on margin loans, once the Financial Services Modernisation Bill reforms of margin lending, come into effect.

Submissions close on Friday 11 September 2009.