Prior to 1999, the legal firm of Rennick & Gaynor was able to provide the mortgage services to its clients directly and was regulated by the Law Institute of Victoria.
At that time, the Corporations Act was amended to introduce managed investments, for which the Australian Securities and Investments Commission (“ASIC”) was responsible. The mortgage service was transferred to Rennick & Gaynor Mortgages Ltd. Since then, further changes have been introduced to the Corporations Act.
Principled Mortgage Investments Limited (“Principled Mortgages”) today holds an Australian Financial Services Licence (number 233081) which gives it the authority to act as the responsible entity for the Principled Mortgage Fund (Australian Registered Scheme Number 124 674 433). Principled Mortgages is no longer a “solicitor’s mortgage fund” and is a separate entity from the legal firm with separate ownership.
The federal government has now introduced the National Consumer Credit Protection Act (NCCP Act), which requires credit providers to become registered (and eventually licensed) in order to provide credit that is regulated under the Nationa Credit Code. The NCCP Act also introduces a “Responsible Lending” regime that requires the credit provider to make an assessment as to whether the credit to be provided to the borrower is suitable or is not suitable.
Further information on these credit regulations can be found on the ASIC website here.
Principled Mortgage Investments Ltd has made numerous submissions to Treasury and to ASIC during the public consultation process for the formulation of the new credit regulations.