Quality data at the heart of responsible lending decisions
Media Release
Dun & Bradstreet (D&B) has welcomed a Federal Government inquiry into financial services and credit reform. The inquiry - which examines a range of issues, including mortgages, margin lending, trustee corporations and other credit products - seeks to improve, simplify and standardise financial services and credit regulation.
A key proposal in the Green Paper - which was released by Senator Sherry for public comment in June - is the ceding of responsibility by the states, in a move that would give regulatory power for financial services and credit related products to the Commonwealth.
In its response to the paper D&B stated that significant reform is required to ensure that regulation enables Australia's financial services sector to evolve and keep pace with continually changing financial markets, products and technology. Critical to achieving this outcome is a move to Commonwealth regulation of mortgages and credit products, and the introduction of comprehensive credit reporting.
According to Christine Christian, D&B's CEO, Australia requires a financial system that responds to the ongoing development and sophistication of global financial markets.
"Comprehensive credit reporting and Commonwealth Regulation of Australia's financial services sector are important elements in our progress towards meeting the demands of continually evolving global financial markets," said Ms Christian.
"Ensuring that Australia's financial services organisations operate in a regulatory environment that encourages competition and product innovation is of paramount importance if our economy is to remain strong and closely connected to the global economy.
"The other equally important element in this debate is consumer protection. The introduction of comprehensive reporting and Commonwealth regulation would help to ensure that consumers receive the highest possible levels of protection against over-indebtedness and predatory lending practices.
D&B's has led a four year campaign to introduce a credit reporting system to Australia that could significantly reduce default rates and improve access to credit for under-served sections of the community. The issue of comprehensive credit reporting has been examined by the Australian Law Reform Commission (ALRC) as part of its inquiry into the Privacy Act and although the ALRC's final recommendations are yet to be made public its draft recommendations supported a move to a comprehensive reporting model.
Submissions to the financial services and credit inquiry will be considered in the preparation of a Regulatory Impact Statement and any other necessary regulatory documents.
More information:
Danielle Woods
D&B PR Manager
02 8270 2926
About D&B
D&B is the world's leading provider of business-to-business credit, marketing and purchasing information and receivables management services. D&B manages the world's most valuable commercial database with information on more than 130 million companies.
Information is gathered in 193 countries, in 95 languages or dialects, covering 186 monetary currencies. The database is refreshed more than one million times daily as part of D&B's commitment to provide accurate, comprehensive information for its more than 150,000 customers.
The Australasian operations were bought out by the senior management group in August 2001. It was the first MBO of a wholly owned subsidiary in D&B's history worldwide.
Today Lazard Carnegie Wylie owns an approximate 90% stake in DBA and the local management team a 10% stake.
Strategies for future growth include developing DBA's commercial and consumer credit referencing business; expanding its receivables management outsourcing business; maintaining its lead in the development of unique credit and risk scoring products; and developing new products specifically tailored to the Australasian market. DBA currently employs over 500 people in Australia and New Zealand.
