**Money Morning would like to apologize for factual inaccuracies in previous posts. These include the date of the report release and the change in language contained within the report. The post has been updated to reflect these changes.
The share price of Afterpay Touch Group Ltd [ASX:APT] is down 4.85%, at time of writing.
It’s now trading at $11.19 per share.
This has been a volatile month for the company, with good news about its expansion into the US market providing buoyancy between the troughs:
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Change in Language
In a Senate report summarizing the submissions to the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018, it is noted that,
‘ASIC and consumer groups called for the bill to cover all products regulated by ASIC. This would mean that the design and distribution obligations would cover … buy-now-pay-later products.’
This language reflected a correction or ‘corrigendum,’ on 16 November 2018, to the earlier wording of the report, which indicated that Afterpay was in favour of such a move by ASIC.
As per its submission, Afterpay is withholding a final position pending changes to ASIC’s intervention powers.
Markets are currently digesting the findings of the Senate inquiry’s report.
Afterpay looking for regulatory clarity.
Afterpay will likely be seeking further clarity from regulators going forward.
There has been debate about how much of Afterpay’s revenue is generated by late fees.
Currently, 24.4% of its revenue comes from late fees.
For Money Morning