Mandatory Comprehensive Credit Reporting Exposure draft law and explanatory materials This table sets out the key elements of the Mandatory Comprehensive Credit Reporting Regime and shows the relevant sections and references. It is intended to help you locate those parts of the Bill which reflect the key elements of the Mandatory Comprehensive Credit Reporting Regime. Issue Bill ref. Brief explanation Who must supply data? (Paragraphs 1.34 to 1.42 of the explanatory material) The mandatory regime applies to eligible licensees. On 1 July 2018 an eligible licensee is a large ADI and any of its subsidiaries that hold an Australian Credit Licence. A large ADI is an ADI that has total resident assets greater than $100 billion. A regulation can be made to extend the regime to other credit providers. Large ADIs and their subsidiaries that hold an Australian Credit License 133CN(1)(a) Extending the regime to other credit providers 133CN(1)(a) Definition of credit provider Item 2 ss5(1) Definition of large ADI Item 3 ss5(1) When must the data be supplied? The first bulk supply must be made within 90 days of the first 1 July after the credit provider becomes an eligible licensee. The first supply must include information on 50 per cent of open and active accounts. The second bulk supply must be made within 90 days of the 1 July that occurs 12 months later. This supply must include information on the remaining accounts not included in the first supply or that have subsequently opened. Updates on existing accounts and information on new accounts must be supplied within 20 days of the end of the month when the update occurred or the account opened. Initial bulk supply (Paragraphs 1.39 to 1.42 of the explanatory material) 133CR(1) & Remaining bulk supply (Paragraphs 1.40 to 1.42 of the explanatory material) 133CR(3) Ongoing supply (Paragraphs 1.54 to 1.61 of the explanatory material) 133CT Regulations can recognise an equivalent arrangement for ongoing supply. (Paragraphs 1.62 to 1.65 of the explanatory material) 133CT(1)(b)(i)
Statements about ongoing supply must be given within 3 months after the end of the year to which they relate. A credit reporting body must give the Treasurer statements about the on-disclosure of information within 3 months of the end of the year to which they relate. Review of the mandatory regime 133CZH An independent review of the mandatory regime must be completed by 1 January 2022. It must be tabled in Parliament. Penalties and other enforcement powers (Paragraphs 1.130 to 1.138 of the explanatory material) ASIC may seek civil penalties where an eligible licensee fails to supply credit information or a statement to the Treasurer. ASIC may also seek a civil penalty if a credit reporting body breaches its on-disclosure obligations or fails to supply the Treasurer with a statement. The maximum civil penalty that can be imposed is currently $420,000 for a natural person and $2.1 million for a body corporate. Criminal penalties may also be imposed up to $21,000. Consequences for not supplying credit information Consequences for disclosing information when the ‘principles of reciprocity’ have not been met. Consequences for not supplying statements to the Treasurer. ASIC’s powers to obtain information and monitor the regime (Paragraphs 1.137 to 1.159 of the explanatory material) Many of ASIC’s existing powers are extended to the mandatory comprehensive credit reporting regime requirement so that it can monitor and ensure compliance with the supply requirements and ondisclosure restrictions. Issuing an infringement notice Existing s331 Obligation to provide ASIC with a statement or an audit report 133CZD Obligation to give ASIC information required by the regulations 133CZE Obligation to provide ASIC with assistance 133CZF Inspection of books and information gathering powers Items 5 to 10 Commencement date 1 July 2018.