National Consumer Credit Protection Amendment Regulations 2010 (No. 3)1
Select Legislative Instrument 2010 No. 137
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the National Consumer Credit Protection Act 2009.
Dated 15 June 2010
QUENTIN BRYCE
Governor-General
By Her Excellency’s Command
CHRIS BOWEN
Minister for Financial Services, Superannuation and Corporate Law
1 Name of Regulations
These Regulations are the National Consumer Credit Protection Amendment Regulations 2010 (No. 3).
2 Commencement
These Regulations commence on the day after they are registered.
3 Amendment of National Consumer Credit Protection Regulations 2010
Schedule 1 amends the National Consumer Credit Protection Regulations 2010.
Schedule 1 Amendments
(regulation 3)
[1] Subregulation 3 (1), after definition of exempt public authority
insert
exempt special purpose funding entity means a special purpose funding entity that is engaging in a credit activity and is exempt, under regulation 23B, from the requirement to hold a licence.
[2] Subregulation 3 (1), after definition of foreign company
insert
fundraising special purpose entity has the meaning given by section 5 of the Act as modified by item 3.2 of Schedule 3.
inappropriate person means:
(a) a person in relation to whom:
(i) a prescribed State or Territory order is in force; or
(ii) a banning or disqualification order under Division 8 of Part 7.6 of the Corporations Act 2001 is in force; or
(b) a person who is banned from engaging in a credit activity under:
(i) a law of a State or Territory; or
(ii) Part 2-4 of the Act; or
(c) a person who has been convicted of a serious fraud during the last 10 years; or
(d) a person who is disqualified from managing a corporation under Part 2D.6 of the Corporations Act 2001; or
(e) a person:
(i) who is registered to engage in credit activities under Schedule 2 of the Transitional Act; and
(ii) whose registration is suspended under a provision of item 23 of Schedule 2 to the Transitional Act, other than under paragraph 23 (1) (a) or (b); or
(f) a person:
(i) who has been registered to engage in credit activities under Schedule 2 of the Transitional Act; and
(ii) whose registration has been cancelled under a provision of item 23 of Schedule 2 to the Transitional Act, other than paragraph 23 (1) (a) or (b); or
(g) a person:
(i) who is the holder of an Australian credit licence; and
(ii) whose licence is suspended on a ground mentioned in subsection 54 (1) of the Act, other than a ground mentioned in paragraph 54 (1) (a) or (b); or
(h) a person:
(i) who has been the holder of an Australian credit licence; and
(ii) whose licence has been cancelled on a ground mentioned in subsection 54 (1) of the Act, other than a ground mentioned in paragraph 54 (1) (a) or (b).
(i) a person:
(i) who is the holder of an Australian financial services licence; and
(ii) whose licence is suspended on a ground mentioned in section 915B of the Corporations Act 2001, other than a ground mentioned in any of the following paragraphs:
(A) paragraph 915B (1) (a) or (e);
(B) paragraph 915B (2) (a) or (d);
(C) paragraph 915B (3) (a) or (d);
(D) paragraph 915B (4) (a) or (d); or
(j) a person:
(i) who has been the holder of an Australian financial services licence; and
(ii) whose licence has been cancelled on a ground mentioned in section 915B of the Corporations Act 2001, other than a ground mentioned in any of the following paragraphs:
(A) paragraph 915B (1) (a) or (e);
(B) paragraph 915B (2) (a) or (d);
(C) paragraph 915B (3) (a) or (d);
(D) paragraph 915B (4) (a) or (d).
[3] Subregulation 3 (1), after definition of linked credit provider or lessor
insert
non-standard business premises means business premises that are not physically separate from premises regularly used by consumers for purposes other than being contacted in relation to the supply of goods or services.
[4] Subregulation 3 (1), after definition of registered person
insert
securitisation entity has the meaning given by section 5 of the Act as modified by item 3.4 of Schedule 3.
[5] Subregulation 3 (1), after definition of services
insert
servicing agreement has the meaning given by section 5 of the Act as modified by item 3.4 of Schedule 3.
[6] Subregulation 3 (1), definition of unsolicited contact
substitute
unsolicited contact includes contact with a consumer by a person in relation to the supply of goods or services by the person to the consumer, if:
(a) the contact is made from a non-standard business premises; or
(b) if the consumer provided the consumer’s contact details to the person for the sole purpose of being contacted by the person in relation to the supply of goods or services by the person to the consumer — the contact is made on or after the day 3 months after the consumer provided the contact details; or
(c) the contact is not authorised contact.
[7] Regulation 7A
substitute
7A When licence may be granted — continuous credit activity
For paragraph 37 (1) (e) of the Act, a requirement in relation to a person who:
(a) is a credit provider, lessor, mortgagee or beneficiary of a guarantee in relation to a carried over instrument immediately before 1 July 2010; and
(b) intends to engage in a credit activity in relation to the carried over instrument on or after 1 July 2010; and
(c) intends to engage in a credit activity otherwise than in relation to the carried over instrument on or after 1 July 2010;
is that the person must apply under section 36 of the Act for a licence to engage in the credit activities mentioned in paragraphs (b) and (c).
[8] After regulation 9
insert
9A The conditions on the licence — special purpose funding entity
(1) For subsection 45 (7) of the Act, the licence is subject to the conditions set out in this regulation if the licensee is a party to a servicing agreement with a special purpose funding entity.
(2) The licensee must notify ASIC, in an approved form, that the licensee is a party to a servicing agreement with a special purpose funding entity.
(3) For subregulation (2):
(a) if the servicing agreement was entered into before 1 July 2010, the licensee must notify ASIC no later than 30 business days after 1 July 2010; and
(b) if the servicing agreement was entered into on or after 1 July 2010, the licensee must notify ASIC no later than 20 business days after the servicing agreement was entered into.
(4) If the licensee ceases to be a party to a servicing agreement with a special purpose funding entity, the licensee:
(a) must notify ASIC, in an approved form, that the licensee has ceased to be a party to the servicing agreement with the entity; and
(b) must notify ASIC no later than 15 business days after the licensee ceases to be a party.
(5) The licensee:
(a) must notify ASIC, in an approved form, of any action by a natural person in a position to control or influence the special purpose funding entity that has or may have the effect of directing the licensee to act inconsistently with:
(i) the licensee’s licence conditions; or
(ii) the credit legislation; and
(b) must notify ASIC no later than 15 business days after the action occurs.
[9] Paragraph 19 (1) (a)
omit
paragraphs 106 (a) and (b)
insert
paragraph 102 (1) (b)
[10] Paragraph 20 (11) (b)
omit each mention of
licensee or registered person
insert
licensee, registered person or exempt special purpose funding entity
[11] Sub-subparagraph 20 (12) (a) (i) (B)
after
lessor
insert
or an exempt special purpose funding entity that is a credit provider or lessor
[12] Subparagraphs 21 (3) (a) and (d)
omit each mention of
licensee or a registered person
insert
licensee, registered person or exempt special purpose funding entity
[13] Subregulation 22 (3)
omit each mention of
licensee or a registered person
insert
licensee, registered person or exempt special purpose funding entity
[14] Regulation 23, heading
substitute
23 Persons exempt from requiring a licence — suppliers of goods or services
[15] Subregulation 23 (5)
omit each mention of
licensee or registered person
insert
licensee, registered person or exempt special purpose funding entity
[16] Regulation 23A, heading
substitute
23A Persons exempt from requiring a licence — suppliers of goods or services with branded or co-branded credit card
[17] Subparagraph 23A (3) (a) (iii)
substitute
(iii) engaging in a credit activity on behalf of the supplier of goods or services; and
[18] Paragraphs 23A (4) (a) and (5) (a)
omit
licensee or registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[19] Subregulation 23A (6)
substitute
(6) The person is exempted if the person engages in credit activities on the premises of the supplier.
[20] After regulation 23A
insert
23B Persons exempt from requiring a licence — fund raising special purpose entity
(1) For paragraph 110 (a) of the Act, this regulation applies in relation to a fund raising special purpose entity if:
(a) it engages in a credit activity; and
(b) it is party to a servicing agreement; and
(c) it is a member of an approved external dispute resolution scheme; and
(d) if it is a body corporate — no director or secretary of the body corporate is an inappropriate person; and
(e) if it is a trust — no trustee of the trust is an inappropriate person.
(2) The fund raising special purpose entity is exempted from:
(a) section 29 of the Act; and
(b) definitions in the Act, as they apply to references in the provision mentioned in paragraph (a); and
(c) instruments made for the purpose of any of the provisions mentioned in paragraphs (a) and (b).
Note Section 29 of the Act provides that a person must not engage in a credit activity if the person does not hold a licence authorising the person to engage in the credit activity.
(3) The fund raising special purpose entity is exempted only to the extent that it is engaging in the specified credit activity.
Note 1 If the fund raising special purpose entity also engages in a credit activity that is not the subject of an exemption under the Act or the Transitional Act, it is not exempted in relation to that credit activity.
Note 2 Under subsection 109 (3) of the Act, ASIC may declare that instruments made under Chapter 2 of the Act apply in relation to a credit activity (other than an exempt credit activity in relation to a specified credit contract, mortgage, guarantee or consumer lease), or a class of persons or credit activities as if specified provisions were omitted, modified or varied as specified in the declaration.
23C Persons exempt from requiring a licence — securitisation entity
(1) For paragraph 110 (a) of the Act, this regulation applies in relation to a securitisation entity if:
(a) it engages in a credit activity; and
(b) it is party to a servicing agreement; and
(c) on and after 1 October 2010, it is a member of an approved external dispute resolution scheme; and
(d) if it is a body corporate — no director or secretary of the body corporate is an inappropriate person; and
(e) if it is a trust — no trustee of the trust is an inappropriate person.
(2) The securitisation entity is exempted from:
(a) section 29 of the Act; and
(b) definitions in the Act, as they apply to references in the provision mentioned in paragraph (a); and
(c) instruments made for the purpose of any of the provisions mentioned in paragraphs (a) and (b).
Note Section 29 of the Act provides that a person must not engage in a credit activity if the person does not hold a licence authorising the person to engage in the credit activity.
(3) The securitisation entity is exempted only to the extent that it is engaging in the specified credit activity.
Note 1 If the fund raising special purpose entity also engages in a credit activity that is not the subject of an exemption under the Act or the Transitional Act, it is not exempted in relation to that credit activity.
Note 2 Under subsection 109 (3) of the Act, ASIC may declare that instruments made under Chapter 2 of the Act apply in relation to a credit activity (other than an exempt credit activity in relation to a specified credit contract, mortgage, guarantee or consumer lease), or a class of persons or credit activities as if specified provisions were omitted, modified or varied as specified in the declaration.
[21] Subparagraph 24 (6) (b) (ii)
omit
licensee or a registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[22] Sub-subparagraph 24 (6) (d) (i) (A)
omit
licensee or a registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[23] Sub-subparagraph 24 (6) (d) (i) (B)
omit
person 2; or
insert
person 2; and
[24] After sub-subparagraph 24 (6) (d) (i) (B)
insert
(C) if person 2 is an exempt special purpose funding entity — person 1 gives the consumer the licence number of the licensee who is party to the servicing agreement with the entity; or
[25] Subparagraph 24 (7) (b) (ii)
omit
licensee or a registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[26] Sub-subparagraph 24 (7) (d) (i) (A)
omit
licensee or a registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[27] Sub-subparagraph 24 (7) (d) (i) (B)
omit
person 2; or
insert
person 2; and
[28] After sub-subparagraph 24 (7) (d) (i) (B)
insert
(C) if person 2 is an exempt special purpose funding entity — person 1 gives the consumer the licence number of the licensee who is party to the servicing agreement with the entity; or
[29] Paragraph 24 (8) (a)
omit each mention of
licensee or registered person;
insert
licensee, registered person or exempt special purpose funding entity;
[30] After regulation 25F
insert
25G Modifications — special purpose funding entity
For paragraphs 110 (c) and 164 (d) of the Act, the provisions to which Parts 2-6 and 3-7 of the Act apply apply in relation to:
(a) a special purpose funding entity; or
(b) a licensee or registered person who is a party to a servicing agreement with a special purpose funding entity as if the provisions were modified as set out in Schedule 3.
[31] After regulation 111
insert
111A Exemption from Code — unlicensed carried over instrument lender not member of approved external dispute resolution scheme
(1) For section 203B of the Code, this regulation applies to an unlicensed carried over instrument lender who is not a member of an approved external dispute resolution scheme.
(2) For the avoidance of doubt, the lender is exempt from a provision of the Code mentioned in subregulation (3) to the extent that the provision would otherwise require the lender to disclose information about rights under or access to an approved external dispute resolution scheme.
(3) For subregulation (2) a provision of the Code is any of the following provisions of the Code:
(a) subsection 85 (3);
(b) subsection 87 (3);
(c) paragraph 88 (3) (g);
(d) paragraph 102 (1) (c);
(e) subsection 136 (2);
(f) subsection 149 (2);
(g) subsection 175 (1).
[32] Schedule 1, Form 9, paragraph 3
after
the signed guarantee
insert
(if you do not already have a copy of the guarantee)
[33] Schedule 1, Form 10
omit first mention of
. . . . . . . . . . . . . . .
Date
[34] Schedule 1, Form 12, paragraph 1
omit
· you entered into your contract:
¾ on or after 1 July 2010 and the amount you have borrowed is less than $500 000; or
¾ you entered into your contract before 1 July 2010 and the amount you have borrowed is less than the relevant threshold.*
insert
· you entered into your contract:
¾ on or after 1 July 2010 and the amount you have borrowed is less than $500 000; or
¾ before 1 July 2010 and the amount you have borrowed is less than the relevant threshold.*
[35] Schedule 2, item 2.5, modified paragraph 5A (1) (g)
omit
subitems 23(1) and (2)
insert
paragraph 23(1)(a) or (b)
[36] Schedule 2, item 2.5, modified subparagraphs 5A (1) (i) (i) to (iv)
omit
and
insert
or
[37] Schedule 2, after item 2.12
insert
2.12A Part 2-2, Division 4 heading
substitute
Division 4 — Conditions for unlicensed carried over instrument lender
[38] Schedule 2, after item 2.18
insert
2.18A Subsection 47 (2)
omit
licensee
insert
unlicensed carried over instrument lender
[39] Schedule 2, item 2.23, modified subsection 49 (3A)
after,
audit report,
insert
prepared by a suitably qualified person and
[40] Schedule 2, after item 2.26
insert
2.26A Subsection 51 (1)
omit each mention of
licensee
insert
unlicensed carried over instrument lender
[41] Schedule 2, item 2.39, modified subsection 75 (1)
after
prescribed
insert
unlicensed
[42] Schedule 2, item 2.39, modified subsection 75 (1)
after
ASIC
insert
in an approved form
[43] Schedule 2, item 2.39, modified paragraph 75 (1) (b)
substitute
(b) the basis, under section 5A, on which the lender is a prescribed unlicensed carried over instrument lender; and
[44] Schedule 2, item 2.39, after modified section 75
insert
75A Obligation for prescribed unlicensed carried over instrument lender if appointment of licensee, registered person or unlicensed carried over instrument lender ceases
(1) This section applies if a licensee or registered person is appointed by a prescribed unlicensed carried over instrument lender to engage in a credit activity on behalf of the lender under section 74.
(2) The appointment is continuous until the first of the following events occurs:
(a) the licensee, registered person or unlicensed carried over instrument lender dies or otherwise ceases to engage in the business;
(b) the licensee, registered person or unlicensed carried over instrument lender is unable to perform its duties.
(3) If the licensee’s, registered person’s or unlicensed carried over instrument lender’s appointment ceases under subsection (2), the prescribed unlicensed carried over instrument lender must:
(a) no later than 15 business days after the appointment is ceased, appoint another licensee or registered person to engage in the credit activity on behalf of the lender; and
(b) notify ASIC, under section 75, of the appointment no later than 15 business days after appointing the licensee or registered person.
Offence
(4) A person commits an offence if:
(a) the person is subject to a requirement under subsection (3); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 25 penalty units, or 6 months imprisonment, or both.
Strict liability offence
(5) A person commits an offence if:
(a) the person is subject to a requirement under subsection (3); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
(6) Subsection (5) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
75B Obligation if person ceases to be prescribed unlicensed carried over instrument lender
(1) If a person is a prescribed unlicensed carried over instrument lender because a matter mentioned in subsection 5A (1) applies to the person and the matter ceases to apply to the person, the person must:
(a) notify ASIC that the matter has ceased to apply to the person; and
(b) give the notice no later than 15 days after the day on which the matter ceases to apply to the person.
Offence
(2) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 25 penalty units, or 6 months imprisonment, or both.
Strict liability offence
(3) A person commits an offence if:
(a) the person is subject to a requirement under subsection (1); and
(b) the person engages in conduct; and
(c) the conduct contravenes the requirement.
Criminal penalty: 10 penalty units.
(4) Subsection (3) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.
[45] Schedule 2, item 2.39, modified subsection 76 (1)
after
prescribed
insert
unlicensed
[46] Schedule 2, item 2.39, modified subsection 76 (1)
after
ASIC
insert
in an approved form
[47] Schedule 2, after item 2.39
insert
2.39B Part 2-4
omit
2.39C Part 2-5, heading
substitute
Part 2-5 — Financial records and audit reports
[48] Schedule 2, item 2.40
substitute
2.40 Section 87
omit
2.40A Subsection 88 (1)
omit
A licensee
insert
An unlicensed carried over instrument lender
2.40B Subsection 88 (1)
omit
licensee.
insert
lender.
2.40C Paragraph 88 (2) (c)
omit
2.40D Subsection 88 (4)
omit
A licensee
insert
An unlicensed carried over instrument lender
2.40E Subsection 88 (4)
omit
licensee.
insert
lender.
[49] Schedule 2, item 2.47, modified subsection 102 (1)
after
49(3)
insert
or 49(3A)
[50] Schedule 2, item 2.52
substitute
2.52 Paragraph 104 (2) (b)
substitute
(b) constitutes or may constitute a contravention of section 45 or Division 2; or
[51] Schedule 2, after item 2.53
insert
2.53A Paragraph 106 (b)
omit
[52] Schedule 2, items 2.54 and 2.55
omit
[53] After Schedule 2
insert
Schedule 3 Modifications — special purpose funding entity
(regulation 25G)
3.1 Section 5, after definition of contravention
insert
court has the same meaning as it has in Part 4-3.
3.2 Section 5, after definition of function
insert
fund raising special purpose entity means a body corporate or trust that:
(a) has the sole purpose of raising funds in order to be:
(i) a credit provider for a credit contract; or
(ii) a lessor for a consumer lease; and
(b) raises funds from persons other than natural persons; and
(c) only engages in credit activities as a credit provider under a credit contract or a lessor under a consumer lease; and
(d) does not have any employees; and
(e) is not a licensee or registered person.
3.3 Section 5, after definition of registered company auditor
insert
registered person has the meaning given by section 4 of the Transitional Act.
3.4 Section 5, after definition of representative
insert
securitisation entity means a body corporate or trust that:
(a) carries on a business consisting of managing by way of a securitisation transaction some or all of the economic risk associated with assets, liabilities or investments (whether the body corporate or trust assumes the risk from another person or creates the risk itself); and
(b) is an insolvency remote special purpose funding entity according to the criteria of an internationally recognised rating agency that are applicable to the circumstances of the body corporate or trust (regardless of whether the agency has determined that the body corporate or trust satisfies the criteria); and
(c) raises substantially all of its funds by issuing securitisation products on terms that the funds raised would be applied to the business mentioned in paragraph (a); and
(d) is a credit provider under a credit contract or a lessor under a consumer lease.
securitisation product means a debt instrument or an interest in a managed investment scheme (within the meaning of section 9 of the Corporations Act 2001).
securitisation transaction means an arrangement under which a licensee or registered person assigns its rights under a credit contract or consumer lease to a special purpose funding entity to enable the entity or another special purpose funding entity to issue securitisation products to raise funds to acquire the rights under the credit contract or consumer lease.
servicing agreement means an agreement:
(a) that is between:
(i) a special purpose funding entity; and
(ii) a licensee or registered person; and
(b) under which the licensee or registered person, on behalf of the special purpose funding entity, performs obligations, or exercises the rights of:
(i) a credit provider in relation to a credit contract or proposed credit contract; or
(ii) a lessor in relation to a consumer lease or proposed consumer lease; or
(iii) a mortgagee in relation to a mortgage or proposed mortgage; or
(iv) a person who is a beneficiary of a guarantee or proposed guarantee in relation to the guarantee or proposed guarantee.
special purpose funding entity means a fund raising special purpose entity or a securitisation entity.
3.5 Subsection 29 (4)
omit
3.6 Subsection 45 (1), including the subheading
substitute
ASIC may impose, vary or revoke conditions on licensee who is party to a servicing agreement
(1) ASIC may, at any time:
(a) impose conditions or additional conditions on a licensee who is a party to a servicing agreement with a special purpose funding entity, including a condition requiring the licensee to cease engaging in a credit activity on behalf of a special purpose funding entity; and
(b) vary or revoke conditions imposed on the licensee.
3.7 Section 46
omit
3.8 Before section 74
insert in Division 4
74A Definitions for this Division
In this Division:
represented person means a special purpose funding entity that is exempt from the requirement to be licensed under the Credit Act or exempt from the requirement to be registered under the Transitional Act.
representative includes a licensee or registered person who is a party to a servicing agreement with a special purpose funding entity.
3.9 Section 74
omit
licensee
insert
represented person
3.10 Section 75, heading
substitute
75 Responsibility if representative of only one represented person
3.11 Section 75
omit each mention of
licensee
insert
represented person
3.12 Section 76, heading
substitute
76 Representatives of multiple represented persons
3.13 Subsections 76 (1) and (2)
omit each mention of
licensee
insert
represented person
3.14 Subsection 76 (2)
omit
licensees
insert
represented persons
3.15 Paragraph 76 (3) (a)
omit
licensees
insert
represented persons
3.16 Paragraph 76 (3) (c)
substitute
(c) the conduct is within the authority of:
(i) only one of those represented persons (the authorising represented person); or
(ii) 2 or more of those represented persons (the authorising represented persons);
3.17 Paragraph 76 (3) (d)
omit
authorising licensee
insert
authorising represented person
3.18 Paragraph 76 (3) (d)
omit
licensee
insert
represented person
3.19 Paragraph 76 (3) (e)
omit
authorising licensees
insert
authorising represented persons
3.21 Section 77
omit each mention of
licensee
insert
represented person
3.22 Section 78
omit each mention of
licensee
insert
represented person
3.23 Subsection 78 (2)
omit
licensees
insert
represented persons
3.24 Section 112
substitute
112 Application of this Part
This Part does not apply in relation to credit assistance provided by a licensee or registered person in relation to a proposed credit contract if:
(a) a special purpose funding entity will be the credit provider under the contract; and
(b) the licensee or registered person is party to a servicing agreement with the special purpose funding entity.
3.25 Section 125
substitute
125 Definition for this Part
In this Part:
licensee means a licensee or registered person.
3.26 Subsection 126 (1)
substitute
(1) As soon as practicable after it becomes apparent to a special purpose funding entity that it is likely to enter a credit contract with a consumer who will be the debtor under the contract, the entity must take reasonable steps to ensure that the licensee who is a party to a servicing agreement with the entity gives the consumer the licensee’s credit guide in accordance with subsection (2).
Civil penalty: 2,000 penalty units.
3.27 Subsection 127 (1)
substitute
(1) If a special purpose funding entity has been assigned any rights or obligations of a credit provider under a credit contract and the licensee is acting on behalf of the entity, the entity must take reasonable steps to ensure that the licensee:
(a) gives the debtor under the contract the licensee’s credit guide in accordance with subsection (2); and
(b) gives the credit guide to the debtor as soon as practicable after the entity has been assigned the rights or obligations.
Civil penalty: 2,000 penalty units.
3.28 Section 128
omit each mention of
licensee
insert
special purpose funding entity
3.29 Section 129
omit each mention of
licensee
insert
special purpose funding entity
3.30 Section 130
omit each mention of
licensee
insert
special purpose funding entity
3.31 Section 131
omit each mention of
licensee
insert
special purpose funding entity
3.32 Section 132
omit each mention of
licensee
insert
special purpose funding entity
3.33 Section 133
omit each mention of
licensee
insert
special purpose funding entity
3.34 Section 134
omit
3.35 Section 135
substitute
135 Application of this Part
This Part does not apply in relation to credit assistance provided by a licensee or registered person in relation to a consumer lease if:
(a) a special purpose funding entity will be the lessor under the lease; and
(b) the licensee or registered person is party to a servicing agreement with the special purpose funding entity.
3.36 Section 148
substitute
148 Definition for this Part
In this Part:
licensee means a licensee or registered person.
3.37 Subsection 149 (1)
substitute
(1) As soon as practicable after it becomes apparent to a special purpose funding entity that a licensee with whom it has a servicing agreement is likely to enter a consumer lease with a consumer who will be the lessee under the lease, the entity must take reasonable steps to ensure that the licensee gives the consumer the licensee’s credit guide in accordance with subsection (2).
Civil penalty: 2,000 penalty units.
3.38 Subsection 150 (1)
substitute
(1) If a special purpose funding entity has been assigned any rights or obligations of a lessor under a consumer lease and a licensee is acting on behalf of the entity, the entity must take reasonable steps to ensure that the licensee:
(a) gives the lessee under the lease the licensee’s credit guide in accordance with subsection (2); and
(b) gives the credit guide to the lessee as soon as practicable after the entity has been assigned the rights or obligations.
Civil penalty: 2,000 penalty units.
3.39 Section 151
omit each mention of
licensee
insert
special purpose funding entity
3.40 Section 152
omit each mention of
licensee
insert
special purpose funding entity
3.41 Section 153
omit
licensee
insert
special purpose funding entity
3.42 Section 154
omit each mention of
licensee
insert
special purpose funding entity
3.43 Section 155
omit each mention of
licensee
insert
special purpose funding entity
3.44 Section 156
omit
licensee
insert
special purpose funding entity
3.45 After section 159
insert
159A Application of this Part
This Part does not apply in relation to a licensee or registered person who is authorised by a credit provider to collect repayments if:
(a) the credit provider is a special purpose funding entity; and
(b) the licensee or registered person is party to a servicing agreement with the special purpose funding entity.
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.
