The following enhancements have been made to the Money Lenders Licence Licensing Conditions with effect from 16 March 2021:
|Revision of Condition 9 (content of advertisements by money lenders) to provide that advertisements published by money lenders should be fair and reasonable and not contain misleading information.
|Revision of Condition 13 (written consent of referee) to provide that the referees’ information should immediately cease to be used if the money lender is informed or aware that the written consent was, in fact, not signed by the referee.
|Addition of a new condition (new Condition 1) to require money lenders, before entering into a loan agreement for an unsecured personal loan, to undertake an assessment of the borrower’s ability to make repayments, and have due regard to the outcome of that assessment.
|Updates to the Guidelines on Licensing Conditions of Money Lenders Licence to reflect the above changes.
In addition to the enhanced licensing conditions, the Registrar also issued two sets of new guidelines on 29 January 2021:
|Guideline on Fit and Proper Criteria for Licensing of Money Lenders: outlines criteria and matters that the Registrar will normally consider in determining the fitness and propriety of applicants for Money Lenders Licences, licensed money lenders, and their related persons.
|Guideline on Submission of Business Plan by Applicant of a Money Lenders Licence: with effect from 1 April 2021, applicants for a new Money Lenders Licence will be required to submit a business plan for their money-lending business together with their application to show that they have a comprehensive understanding of the money-lending business and are ready to carry on the business. This Guideline sets out the key items of information that should be included in the business plan.
For a copy of the latest licensing conditions and Guidelines mentioned above, please visit the Companies Registry’s website.