Book Up Practice In Australia Asic

Asic is australia s corporate markets financial services and consumer credit regulator.

Book up practice in australia asic. In november 2016 the federal court ruled that mr kobelt had engaged in unconscionable and unlicensed conduct. Asic is the leading government agency for financial capability driving initiatives to help australians be in control of their financial lives. This is the first matter examining the conscionability of book up practices that has ever reached final judgement in australia.

A majority of the high court has dismissed an appeal from the full court of the federal court of australia rejecting the proposition that the respondent s provision of book up credit to a remote indigenous community was unconscionable conduct in connection with financial services pursuant to s12cb 1 of the australian securities and investments commission act 2001 cth asic act. A code of conduct or code of practice is a set of enforceable rules setting out an industry s commitments to deliver a certain standard of practice. Codes of conduct are intended to raise industry standards complement legislative requirements and in some cases go beyond the legislative requirements and encourage consumer confidence.

Hence this case concerned whether the supply of credit to the residents of the apy lands under the book up system contravened the proscription of unconscionable conduct fixed by s 12cb 1 of the australian securities and investments commission act 2001 cth asic act. The key problems raised by respondents focused on the way that some book up is provided and. Book up is a common form of informal credit often used in remote parts of south australia that allows customers to buy goods and pay for them later.

As such this is a landmark decision and asic will examine the judgement closely to consider options for ensuring book up providers across the country operate in a best practice manner that complies with the law and does not exploit vulnerable consumers. For more information about asic s role as a regulator go to the asic website.