National Consumer Credit Protection Amendment Regulations 2010 (No. 3) (Cth)

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

Name of Regulations

These Regulations are the National Consumer Credit Protection Amendment Regulations 2010 (No. 3).

Commencement

These Regulations commence on the day after they are registered.

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

7AWhen 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

9AThe 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

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

23APersons 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

23BPersons 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.

23CPersons 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

25GModifications — 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

111AExemption 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:

¾on or after 1 July 2010 and the amount you have borrowed is less than $500 000; or

¾you 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:

¾on or after 1 July 2010 and the amount you have borrowed is less than $500 000; or

¾before 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

2.12APart 2-2, Division 4 heading

substitute

Division 4 — Conditions for unlicensed carried over instrument lender

[38] Schedule 2, after item 2.18

insert

2.18ASubsection 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

2.26ASubsection 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

75AObligation 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.

75BObligation 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

2.39BPart 2-4

omit

2.39CPart 2-5, heading

substitute

Part 2-5 — Financial records and audit reports

[48] Schedule 2, item 2.40

substitute

2.40Section 87

omit

2.40ASubsection 88 (1)

omit

A licensee

insert

An unlicensed carried over instrument lender

2.40BSubsection 88 (1)

omit

licensee.

insert

lender.

2.40CParagraph 88 (2) (c)

omit

2.40DSubsection 88 (4)

omit

A licensee

insert

An unlicensed carried over instrument lender

2.40ESubsection 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

2.52Paragraph 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

2.53AParagraph 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)

3.1Section 5, after definition of contravention

insert

court has the same meaning as it has in Part 4-3.

3.2Section 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.

3.3Section 5, after definition of registered company auditor

insert

registered person has the meaning given by section 4 of the Transitional Act.

3.4Section 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.

3.5Subsection 29 (4)

omit

3.6Subsection 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.

3.7Section 46

omit

3.8Before section 74

insert in Division 4

74ADefinitions 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.

3.9Section 74

omit

licensee

insert

represented person

3.10Section 75, heading

substitute

Responsibility if representative of only one represented person

3.11Section 75

omit each mention of

licensee

insert

represented person

3.12Section 76, heading

substitute

Representatives of multiple represented persons

3.13Subsections 76 (1) and (2)

omit each mention of

licensee

insert

represented person

3.14Subsection 76 (2)

omit

licensees

insert

represented persons

3.15Paragraph 76 (3) (a)

omit

licensees

insert

represented persons

3.16Paragraph 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);

3.17Paragraph 76 (3) (d)

omit

authorising licensee

insert

authorising represented person

3.18Paragraph 76 (3) (d)

omit

licensee

insert

represented person

3.19Paragraph 76 (3) (e)

omit

authorising licensees

insert

authorising represented persons

3.21Section 77

omit each mention of

licensee

insert

represented person

3.22Section 78

omit each mention of

licensee

insert

represented person

3.23Subsection 78 (2)

omit

licensees

insert

represented persons

3.24Section 112

substitute

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.

3.25Section 125

substitute

Definition for this Part

In this Part:

licensee means a licensee or registered person.

3.26Subsection 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.

3.27Subsection 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.

3.28Section 128

omit each mention of

licensee

insert

special purpose funding entity

3.29Section 129

omit each mention of

licensee

insert

special purpose funding entity

3.30Section 130

omit each mention of

licensee

insert

special purpose funding entity

3.31Section 131

omit each mention of

licensee

insert

special purpose funding entity

3.32Section 132

omit each mention of

licensee

insert

special purpose funding entity

3.33Section 133

omit each mention of

licensee

insert

special purpose funding entity

3.34Section 134

omit

3.35Section 135

substitute

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.

3.36Section 148

substitute

Definition for this Part

In this Part:

licensee means a licensee or registered person.

3.37Subsection 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.

3.38Subsection 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.

3.39Section 151

omit each mention of

licensee

insert

special purpose funding entity

3.40Section 152

omit each mention of

licensee

insert

special purpose funding entity

3.41Section 153

omit

licensee

insert

special purpose funding entity

3.42Section 154

omit each mention of

licensee

insert

special purpose funding entity

3.43Section 155

omit each mention of

licensee

insert

special purpose funding entity

3.44Section 156

omit

licensee

insert

special purpose funding entity

3.45After section 159

insert

159AApplication 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

All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See