Australian fintech company Humm Group has confirmed an interim stop order issued by the nation’s corporate watchdog has been revoked.
The Australian Securities and Investments Commission (ASIC) presented the order last week and restricted the company from offering buy-now-pay-later (BNPL) products to new customers.
ASIC flagged concerns regarding the target market determination for its BNPL products. BNPL target market determination rules require operators to consider whether a product aligns with the financial objectives, circumstances and needs of consumers.
"Humm Group has addressed ASIC's concerns regarding the target market determination for the Humm Buy Now Pay Later product," the company said in statement to shareholders.
Humm Group confirmed its BNPL product is now available to new consumers.
The interim order came as new BNPL regulations were announced last week by assistant treasurer Stephen Jones, requiring operators to comply with responsible lending obligations in a major government crackdown.
Under the new laws, BNPL products will be classified as credit products and force operators to comply with the National Consumer Credit Protection Act and hold an Australian Credit License.
The new laws will also regulate marketing by BNPL operators and require them to demonstrate that their products are suitable for their users.
The regulations come after the federal government called for submissions into three options recommended by Treasury on BNPL regulation last year.
These options included stronger self-regulation and affordability tests; bringing the groups partially under the credit act; and, full regulation under the credit act.
It is expected exposure draft legislation for option two will be released for consultation later this year. The Bill is also expected to be introduced to parliament before the end of the year with enforcement by the end of 2023.