Trade Practices (Removal of Exceptions) Regulations
Statutory Rules 1975 No. 191 as amended
made under the
Trade Practices Act 1974
This compilation was prepared on 26 May 2004
taking into account amendments up to SR 1984 No. 230
Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra
Contents
1 Citation [see Note 1]
2 Commencement
3 Removal of exception — paragraph 51 (1) (b) of the Act
Notes
1 Citation [see Note 1]
These Regulations may be cited as the Trade Practices (Removal of Exceptions) Regulations.
2 Commencement
These Regulations shall come into operation on 1 December 1975.
3 Removal of exception — paragraph 51 (1) (b) of the Act
(1) For the purposes of paragraph 51 (1) (b) of the Act, a requirement by a prescribed society that a borrower from the society shall cause insurance to be effected in a State with an insurer, or one of the insurers, specified, nominated or approved by the society shall not be disregarded in determining whether a contravention of a provision of Part IV of the Act has been committed.
(2) A reference in this regulation to a prescribed society shall be read as a reference to a building society, co-operative society or credit union.
(3) In this regulation:
building society means a society registered or incorporated as a building society, co-operative housing society or similar society under the law in force in a State or a Territory relating to such societies.
co-operative society means a society registered or incorporated as a co-operative society or similar society under the law in force in a State or a Territory relating to such societies.
credit union means a society or other body of persons:
(a) that is registered or incorporated as a credit union or credit society under the law in force in a State or a Territory relating to credit unions or credit societies; or
(b) the principal business of which consists of borrowing moneys from its members or intended members and lending those moneys to its members and which is incorporated under the law in force in a State or a Territory.
Notes to the Trade Practices (Removal of Exceptions) Regulations
Note 1
The Trade Practices (Removal of Exceptions) Regulations (in force under the Trade Practices Act 1974) as shown in this compilation comprise Statutory Rules 1975 No. 191 amended as indicated in the Tables below.
Table of Statutory Rules
Year and
number | Date of notification
in Gazette | Date of
commencement | Application, saving or
transitional provisions |
1975 No. 191 | 1 Oct 1975 | 1 Dec 1975 | |
1979 No. 61 | 11 Apr 1979 | 11 Apr 1979 | — |
1981 No. 250 | 4 Sept 1981 | 4 Sept 1984 | — |
1984 No. 230 | 12 Sept 1984 | 12 Sept 1984 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
R. 3................. | am. 1979 No. 61; 1981 No. 250; 1984 No. 230 |
Overview
The Trade Practices (Removal of Exceptions) Regulations, Statutory Rules 1975 No. 191, were enacted under the Trade Practices Act 1974 to address the issue of prescribed societies imposing specific insurance requirements on borrowers. These Regulations, amended over the years, aim to ensure that the insurance conditions imposed by entities such as building societies, co-operative societies, or credit unions do not exempt them from compliance with the Trade Practices Act. The objective is to maintain fair trading practices and prevent these societies from exploiting their borrowers through mandatory insurance clauses, thereby safeguarding consumer interests. Enacted by the Australian Parliament, these Regulations were designed to streamline and clarify the regulatory framework surrounding financial practices within these specific entities.
Scope and Application
The Trade Practices (Removal of Exceptions) Regulations 1975, made under the Trade Practices Act 1974, specify the removal of an exception that was previously applicable to certain requirements imposed by prescribed societies. This legislation applies to building societies, co-operative societies, and credit unions, which are defined as entities registered or incorporated under state or territory laws. These prescribed societies are entities that engage in borrowing and lending activities with their members or intended members. The Regulations came into effect on 1 December 1975 and have been amended several times, most recently on 12 September 1984. The Regulations aim to ensure that specific requirements imposed by these societies, such as mandating borrowers to effect insurance with specified insurers, are not disregarded when determining whether a contravention of the Act has occurred. The scope of the Regulations is national, applying across Australia as they are made under a Commonwealth Act, but their impact is felt within the framework of state and territory laws governing the registration and operation of these prescribed societies.
Key Provisions
The Trade Practices (Removal of Exceptions) Regulations (Statutory Rules 1975 No. 191 as amended) are subsidiary legislation made under the Trade Practices Act 1974. They came into operation on 1 December 1975 and have been amended several times since then, with the most recent amendment being Statutory Rules 1984 No. 230, which commenced on 12 September 1984. The Regulations primarily address the removal of certain exceptions under the Act, specifically targeting paragraph 51(1)(b) (section 3).
The Regulations stipulate that a requirement by a prescribed society (being a building society, co-operative society, or credit union) for a borrower to cause insurance to be effected with a specified, nominated, or approved insurer shall not be disregarded when determining whether there has been a contravention of Part IV of the Act. This means that such a requirement by a prescribed society cannot be overlooked or deemed irrelevant in assessing compliance with the Act’s provisions.
Entities governed by the Act, specifically building societies, co-operative societies, and credit unions, must adhere to this stipulation. They must ensure that any requirement for borrowers to obtain insurance from specific insurers is considered in the context of compliance with the Act. This places a responsibility on these entities to maintain transparency and compliance in their lending practices, ensuring that any conditions imposed on borrowers are in line with the Act’s regulatory framework.
Failure to comply with the Act’s provisions or the Regulations can lead to significant consequences. Under the Trade Practices Act 1974, contraventions can result in both civil and criminal penalties. For corporations, the civil penalty can be up to $1.1 million for a single contravention. For individuals, the penalty can be up to $220,000. Additionally, directors or officers involved in the contravention can face personal penalties. Criminal penalties may also apply, with individuals potentially facing imprisonment terms that can vary based on the severity and frequency of the contraventions.