From 1 January 2011, new legislation governing margin lending will take effect, bringing margin loans under the same regulations and obligations as many other financial products.
These changes were introduced to better-protect customers, and include a requirement to assess whether or not a margin loan is suitable for each customer.
A number of changes have been made to St.George Margin Loans to both comply with the new legislation and to help you better-manage your account.
New customers
From 13 December 2010, when you apply for a St.George Margin Loan you’ll be asked to:
- Read a copy of the new St.George Margin Lending Margin Loan Product Disclosure Statement (PDS), along with the Guide to St.George Margin Lending, Financial Services Guide and the Facility Agreement
- Request a credit limit amount for your margin loan on the new application form
- Supply financial information for a credit assessment – the limit approved will be based on this assessment
- Choose how you’d like to be notified of a margin call – via SMS or email
Existing customers
From 13 December 2010:
- Your existing terms and conditions will be amended
- You’ll be assigned a credit limit, which will be mailed to you in November. You’ll also be able to see it by logging onto your online account from 13 December 2010, and on your December statement, mailed in early January
- You’ll need to manage your loan within your credit limit
- You’ll receive an enhanced statement in January, with more details to help you make the most of your margin loan. These include the maximum LVR inclusive of the buffer, your buffer amount and your credit limit