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. 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. 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.

The impact of book up see section. For more information about asic s role as a regulator go to the asic website. 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.

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. This is the first matter examining the conscionability of book up practices that has ever reached final judgement in australia. 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.

C responses show that indigenous consumers relationship with book up is complex and that while there are many problems arising from the use of the service there are also benefits in having book up available. Asic is the leading government agency for financial capability driving initiatives to help australians be in control of their financial lives.