EXPLANATORY STATEMENT
Personal Property Securities (Reports) Determination 2011
Summary
The Personal Property Securities (Reports) Determination 2011 (the Determination) is made under subsection 176(3) of the Personal Property Securities Act 2009 (the Act) by the Personal Property Securities Registrar. The Determination identifies the matters that may be the subject of reports under section 176.
Background
A person can request, in the approved form, a report of matters relating to registered data in relation to that person (subsection 176(1)). The Registrar is able to determine the different matters that a report may contain. A request for a report may incur a fee under section 190.
Notes on Sections
Section 1 – Name of Determination
Section 1 provides for the citation of the Determination as the Personal Property Securities (Reports) Determination 2011.
Section 2 – Commencement
The Determination commences on the day after it is registered.
Section 3 – Interpretation
This section provides that the definition of Act is the Personal Property Securities Act 2009.
Section 4 – Matters that may be the subject of reports
The table in this section sets out the matters that may be the subject of reports under section 176 of the Act. The first matter identified in the table is the registration of a security interest if the grantor is not an individual; that is, an organisational grantor.
A person is able to request notification when any registration for an organisational grantor that is described by ARSN, ACN or ARBN is made or amended, including discharge. Under certain provisions of the Act the priority of a registration may be affected by a subsequent registration in relation to the collateral in which the interested party already has an interest. This report will allow a user to request a notification be sent to them when any activity occurs against registrations for the specified company identifier. A person may then perform a search of the PPS Register using the organisation’s identifier and view the details of the registration events (registrations made and/or amended).
This report replicates a report previously provided by Australian Securities and Investment Commission in relation to charges on its Register of Company Charges.
The second matter that may be subject of reports is any other matter relating to registered data in relation to the person. This will enable a person to request reports on an ad hoc basis in respect of the registered data that relates to them as a secured party or account holder. Reports may contain information derived from data registered with respect to the secured party or account holder. For example, in addition to registration and search activity, reports may also pertain to fees and pending applications, among other things.
A report may also provide a person with information about the number and type of registrations that are due to expire in a given time period. This will provide secured parties an easy way to manage their registrations to ensure they do not expire before any obligations which the collateral may secure are fully met.
Reports will also be available to account customers through the PPS Register in relation to registrations and searches conducted in a given time period, as well as all transactions that may incur a fee in a particular period.
Consultation
Consultation in regard to PPS reform has been extensive with the Department working closely with key stakeholders including banks, equipment financiers and information brokers. In respect of reports under section 176, stakeholders were provided with documents that detailed the requirements for the reports functionality in the PPS Register. The documents described the nature of the proposed reports, set out the context in which the reports would be created, their likely contents and the mode of delivery of the reports. The reports are designed to assist in managing a person’s use of the Register. It is intended that several of the reports, which will be available to account customers through the PPS Register application, will be made available without charge.
Regulatory Impact Analysis
The Office of Best Practice Regulation has previously advised that the personal property securities reforms do not require a Regulatory Impact Statement because the reforms do not involve compulsion and it will be a commercial decision whether businesses register. It is not designed to impose any additional compliance costs on business or individuals or have any adverse impacts on competition.
Overview
The Personal Property Securities (Reports) Determination 2011, made under the Personal Property Securities Act 2009, was enacted to address the need for individuals and organisations to receive updates and reports on the registered data pertaining to them, particularly focusing on the registration and amendments of security interests. This determination was established by the Personal Property Securities Registrar to identify specific matters that can be reported under section 176 of the Act. The policy objective behind this legislation is to facilitate better management of personal property securities by enabling users to request notifications about activities such as registrations, amendments, and discharges related to organisational grantors. Additionally, it allows for ad hoc reports on various aspects of registered data, including registration and search activities, fees, and pending applications, thereby aiding in the efficient management of security interests and preventing registration expirations before obligations are met.
The determination was developed in consultation with key stakeholders, including banks, equipment financiers, and information brokers, ensuring that the reports functionality within the Personal Property Securities Register would meet practical needs. The reports are intended to assist users in managing their interactions with the register, with several reports being made available without charge. The regulatory impact analysis indicates that this reform does not impose additional compliance costs or have adverse competitive effects, reflecting the voluntary nature of business registration under the Act.
Scope and Application
The Personal Property Securities (Reports) Determination 2011 applies to entities and individuals who are directly involved with the Personal Property Securities Register under the Personal Property Securities Act 2009. Specifically, it allows for the generation and request of reports pertaining to registered data, including notifications of registration, amendment, or discharge of security interests, as well as other matters relating to registered data. These reports are primarily intended for organisational grantors, secured parties, and account holders, providing them with insights into their registrations and associated activities. The scope of the Determination is national, as it applies across Australia, and it commences on the day after its registration. It is important to note that the Determination does not impose additional compliance costs or affect competition adversely, as confirmed by the Office of Best Practice Regulation. The Determination can be extended and modified through subordinate instruments to accommodate changes and developments in the legislative framework.
Key Provisions
The Personal Property Securities (Reports) Determination 2011 (section 1) is a regulatory instrument that provides guidance on the types of information that may be included in reports under section 176 of the Personal Property Securities Act 2009 (the Act). The Determination, which came into effect on the day after it was registered (section 2), clarifies the scope of the information that can be requested by individuals or entities through a report. The Act, as defined in section 3 of the Determination, refers specifically to the Personal Property Securities Act 2009. The primary focus of the Determination is on the matters that may be the subject of these reports (section 4). For instance, a person can request a report on the registration of a security interest when the grantor is not an individual, such as a company identified by its ARSN, ACN, or ARBN. This report would notify the requester of any registrations, amendments, or discharges pertaining to the specified company identifier. Another reportable matter is any other information relating to registered data concerning the person, which allows for ad hoc reports on registered data that affects the individual, such as secured parties or account holders. Reports can include details such as registration and search activity, fees, and pending applications.
The Determination imposes several obligations on the parties governed by it. Primarily, it mandates that the Registrar determine the content of reports and ensures that these reports are made available to those who request them, subject to any applicable fees (section 190 of the Act). The reports are designed to assist individuals and entities in managing their interactions with the Personal Property Securities Register (PPS Register), ensuring they are informed about significant activities that may affect their interests. The reports aim to provide transparency and facilitate better management of security interests and related activities.
The Determination does not explicitly outline specific offences or penalties for non-compliance within its text. However, breaches of the Personal Property Securities Act 2009, which the Determination supports, may incur civil or criminal penalties as prescribed by the Act. For instance, misleading or deceptive conduct under the Act could result in civil penalties, including fines and compensation orders. Criminal penalties may also apply for more severe breaches, such as forgery or providing false information, which can lead to imprisonment or substantial fines, as stipulated under the relevant sections of the Act.