Australia financial regulator ASIC has announced a consultation on new regulatory guidance for the buy now pay later (BNPL) industry.
From June 2025, BNPL products will be subject to new laws. The new laws are designed to maintain the benefits of buy now pay later contracts while boosting protection for Australian consumers.
ASIC has released draft Regulatory Guide 000, Low cost credit contracts (Draft RG 000) together with Consultation Paper 382, Low cost credit contracts (CP 382) for industry and relevant stakeholders to provide feedback on.
Under the new laws, buy now pay later providers will need to hold a credit licence and comply with obligations under the National Consumer Credit Protection Act 2009 (National Credit Act) from June 2025.
Where a buy now pay later contract meets the definition of a low cost credit contract, specific obligations will apply.
The draft RG 000 is intended to help providers…
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