With just a fortnight until new national consumer credit laws come into effect, insurance premium funders remain hopeful of securing an exemption to the legislation.

The National Consumer Credit Protection regime, to be introduced on July 1, provides a national code for the provision of credit to consumers for wholly or predominantly personal, household or domestic purposes.

As the legislation stands, anyone who provides credit to retail clients will need to hold an Australian credit licence. But the Insurance Premium Financiers of Australia (IPFA) has submitted an application for relief to regulators in a bid to win amendments to certain parts of the legislation.

Insurance brokers who provide premium funding services are likely to face compliance issues unless they limit their services to passing on factual information and using prepared documents or activities. Only a small number of brokers are therefore expected to be affected.

IPFA Chairman Bob Dodd told insuranceNEWS.com.au the body has since engaged in “good dialogue” with the Australian Securities and Investments Commission (ASIC).

IPFA members believe where insurance premium funding is arranged through a management company acting on behalf of a body corporate or strata, it should be exempt from the regulations.

Currently such arrangements are treated as consumer transactions, compelling the provider to apply for an Australian credit licence.

IPFA has also called for clarification of a point-of-sale exemption definition and more consistent treatment of pay-by-the-month facilities.

ASIC has told the National Insurance Brokers Association that the outcome of its own application on this matter is likely to be determined by Thursday.