ASIC Class Order [CO 10/517]
About this compilation
Compilation No. 1
This is a compilation of ASIC Class Order [CO 10/517] as in force on 26 October 2018. It includes any commenced amendment affecting the legislative instrument to that date.
This compilation was prepared by the Australian Securities and Investments Commission.
The notes at the end of this compilation (the endnotes) include information
about amending instruments and the amendment history of each amended provision.
Australian Securities and Investments Commission
National Consumer Credit Protection Act 2009 — Subparagraph 47(1)(e)(i) — Approval
Enabling legislation
1. The Australian Securities and Investments Commission (ASIC) makes this instrument for the purposes of subparagraph 47(1)(e)(i) of the National Consumer Credit Protection Act 2009 (the Act) as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010 (the Regulations).
Title
2. This instrument is ASIC Class Order [CO 10/517].
Commencement
3. This instrument commences on the later of:
(a) the date it is registered under the Legislative Instruments Act 2003; and
(b) 1 July 2010.
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
Approval
4. ASIC approves the following standards and requirements in relation to an internal dispute resolution procedure:
(a) the procedure covers a “complaint” as defined in AS ISO 10002;
(b) the “Guiding principles” in section 4 of AS ISO 10002;
(c) the following sections of AS ISO 10002:
(i) section 5.1—Commitment;
(ii) section 6.4—Resources;
(iii) section 8.1—Collection of Information;
(iv) section 8.2—Analysis and evaluation of complaints;
(d) if the unlicensed carried over instrument lender is a member of the AFCA scheme—the procedure must include adequate measures for informing complainants about the availability and accessibility of the scheme.
Interpretation
In this instrument:
AS ISO 10002 means Australian Standard AS ISO 10002 known as Complaints Handling published by Standards Australia as in force as at 5 April 2006.
Note: An unlicensed carried over instrument lender is defined in subsection 5(1) of the Act as notionally inserted by regulation 25E and Schedule 2 to the Regulations.
Notes to ASIC Class Order [CO 10/517]
Note 1
ASIC Class Order [CO 10/517] (in force under s47(1)(e)(i) of the National Consumer Credit Protection Act 2009) as shown in this compilation comprises that Class Order amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of registration | Date of commencement | Application, saving or transitional provisions |
[CO 10/517] | 1/7/2010 (see F2010L01869) | 1/7/2010 | |
2018/937 | 25/10/2018 (see F2018L01466) | Sch 1: 26/10/2018
Sch 2: 26/10/2018
| Applies on and after 1/11/2018 Applies on and after 1/11/2018 |
Table of Amendments
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Subpara 4(d)....... | am. 2018/937 Sch 1 and 2018/937 Sch 2 |
Overview
ASIC Class Order [CO 10/517], enacted in 2010, was introduced to address the need for effective internal dispute resolution procedures for unlicensed carried over instrument lenders under the National Consumer Credit Protection Act 2009. This Class Order was made by the Australian Securities and Investments Commission (ASIC) in accordance with the enabling provisions of the Act. The policy objective is to ensure that lenders provide fair and accessible means for handling customer complaints, thereby promoting consumer protection and maintaining market integrity. The Class Order specifically approves certain standards and requirements, including the adoption of AS ISO 10002 guidelines for complaints handling, to ensure that these procedures are robust and effectively implemented.
Scope and Application
ASIC Class Order [CO 10/517] applies to unlicensed carried over instrument lenders under the National Consumer Credit Protection Act 2009. The Act, as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010, mandates that these lenders must comply with the standards and requirements related to an internal dispute resolution procedure as approved by ASIC. This includes adhering to the definitions and sections of Australian Standard AS ISO 10002 concerning complaints handling. The scope of this legislation is focused on ensuring that these lenders provide adequate and effective means for handling complaints from consumers, thereby promoting fair and transparent practices within the industry. This Class Order was enacted to commence on 1 July 2010 and applies nationally across Australia. It extends its reach to any amendments that may be introduced through subordinate instruments, ensuring that the standards and requirements remain current and effective. The Class Order also specifies that if an unlicensed carried over instrument lender is a member of the AFCA scheme, the dispute resolution procedure must include measures to inform complainants about the availability and accessibility of this scheme.
Key Provisions
The key provisions of ASIC Class Order [CO 10/517] (the Order) are contained in sections 4 and 5, which outline the standards and requirements ASIC approves for an internal dispute resolution procedure, and the interpretation of certain terms within the Order. Section 4 of the Order specifies that ASIC approves an internal dispute resolution procedure that covers a "complaint" as defined in AS ISO 10002, and includes the Guiding Principles and certain sections of AS ISO 10002 (sections 4(a), (b), (c)(i), (c)(ii), (c)(iii) and (c)(iv)). If the unlicensed carried over instrument lender is a member of the AFCA scheme, the procedure must also include adequate measures for informing complainants about the availability and accessibility of the scheme (section 4(d)). Section 5 provides an interpretation of the term "AS ISO 10002" within the Order (section 5).
The Order imposes certain obligations and requirements on unlicensed carried over instrument lenders. These lenders must ensure that their internal dispute resolution procedure aligns with the approved standards and requirements set out in the Order. Specifically, they must cover complaints as defined in AS ISO 10002, adhere to the Guiding Principles and certain sections of AS ISO 10002, and if they are members of the AFCA scheme, include adequate measures for informing complainants about the availability and accessibility of the scheme. These requirements aim to ensure that lenders have a fair, efficient, and effective process for handling customer complaints.
Breach of the requirements set out in the Order may result in civil or criminal consequences. While the Order itself does not explicitly state the penalties for non-compliance, breaches of the National Consumer Credit Protection Act 2009 (the Act), which the Order is made under, may incur civil penalties. For example, section 12GB of the Act provides for civil penalty provisions, including penalties of up to $222,200 for individuals and $1,111,000 for bodies corporate, for breaches of certain sections of the Act. Additionally, more serious breaches of the Act may lead to criminal penalties, with maximum penalties varying depending on the specific offence. It is important for unlicensed carried over instrument lenders to comply with the requirements of the Order to avoid potential civil and criminal consequences.