Question

summary of intervention orders that ASIC imposes on banning short term lending model to protect consumers from predatory lending.

Answer 1

The product intervention power allows ASIC to intervene and take temporary action where financial and credit products have resulted in or are likely to result in, significant consumer detriment.

The regulatory guide sets out the scope of the power, when and how ASIC expects to use the power and how a product intervention order is made.

‘The product intervention power is an incredibly important addition to ASIC’s regulatory toolkit. ASIC can now step in and respond to significant consumer detriment in a targeted and timely way. But there are also important checks and balances – it is a temporary intervention power and we must consult before each and every use. ASIC can take a range of temporary actions including banning a product or product feature, imposing sale restrictions, amending product information or choice architecture.

The product intervention power was enacted in April 2019 with new design and distribution obligations. The product intervention power is available for ASIC to use now. The design and distribution obligations do not apply to industry until April 2021.