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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Financial Sector Reform (Hayne Royal
Commission Response--Protecting
Consumers (2019 Measures)) Bill 2019
No. , 2019
(Treasury)
A Bill for an Act to amend the law relating to
unfair contract terms and insurance contracts,
funeral expenses facilities, funeral benefits,
mortgage brokers and mortgage intermediaries,
and for related purposes
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Schedules ........................................................................................... 2
Schedule 1--Unfair contract terms in insurance contracts
3
Australian Securities and Investments Commission Act 2001
3
Insurance Contracts Act 1984
5
Schedule 2--Funeral expenses facilities
7
Australian Securities and Investments Commission Act 2001
7
Corporations Act 2001
7
Schedule 3--Mortgage brokers
8
Part 1--Main amendments
8
National Consumer Credit Protection Act 2009
8
National Consumer Credit Protection (Transitional and
Consequential Provisions) Act 2009
17
Part 2--Consequential amendments
19
National Consumer Credit Protection Act 2009
19
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
1
A Bill for an Act to amend the law relating to
1
unfair contract terms and insurance contracts,
2
funeral expenses facilities, funeral benefits,
3
mortgage brokers and mortgage intermediaries,
4
and for related purposes
5
The Parliament of Australia enacts:
6
1 Short title
7
This Act is the
Financial Sector Reform (Hayne Royal Commission
8
Response--Protecting Consumers (2019 Measures)) Act 2019
.
9
2
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
5 April 2021.
5 April 2021
3. Schedules 2
and 3
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Schedules
13
Legislation that is specified in a Schedule to this Act is amended or
14
repealed as set out in the applicable items in the Schedule
15
concerned, and any other item in a Schedule to this Act has effect
16
according to its terms.
17
Unfair contract terms in insurance contracts
Schedule 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
3
Schedule 1--Unfair contract terms in
1
insurance contracts
2
3
Australian Securities and Investments Commission Act 2001
4
1 Subsection 12BA(1)
5
Insert:
6
Insurance Contracts Act insurance contract
means a contract of
7
insurance to which the
Insurance Contracts Act 1984
applies.
8
2 At the end of section 12BF
9
Add:
10
Note:
This section applies to Insurance Contracts Act insurance contracts in
11
addition to the
Insurance Contracts Act 1984
(see paragraph 15(2)(d)
12
of that Act).
13
3 At the end of subsection 12BI(1)
14
Add:
15
; or (d) if the contract is an Insurance Contracts Act insurance
16
contract--is a transparent term that:
17
(i) is disclosed at or before the time the contract is entered
18
into; and
19
(ii) sets an amount of excess or deductible under the
20
contract.
21
4 At the end of section 12BI
22
Add:
23
(4) For the purposes of applying paragraph (1)(a) to an Insurance
24
Contracts Act insurance contract, have regard to the main subject
25
matter of the contract only to the extent that it describes what is
26
being insured.
27
5 After subsection 12BL(1)
28
Insert:
29
(1A) This Subdivision does not apply to a contract of insurance:
30
Schedule 1
Unfair contract terms in insurance contracts
4
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
(a) under which a person provides medical indemnity cover
1
(within the meaning of the
Medical Indemnity (Prudential
2
Supervision and Product Standards) Act 2003
) for:
3
(i) a medical practitioner (within the meaning of that Act);
4
or
5
(ii) a registered health professional (within the meaning of
6
that Act) prescribed by regulations made under that Act
7
for the purposes of a provision of Part 3 of that Act; and
8
(b) to which that Act applies.
9
6 At the end of subsections 12GND(1) and (2)
10
Add:
11
; or (c) if the contract is an Insurance Contracts Act insurance
12
contract--a person who is a third party beneficiary (within
13
the meaning of the
Insurance Contracts Act 1984
) under the
14
contract.
15
7 In the appropriate position
16
Insert:
17
Part 29--Application provisions relating to the
18
Financial Sector Reform (Hayne Royal
19
Commission Response--Protecting
20
Consumers (2019 Measures)) Act 2019
21
22
325 Application--unfair contract terms
23
(1) The amendments of this Act made by Schedule 1 to the
Financial
24
Sector Reform (Hayne Royal Commission Response--Protecting
25
Consumers (2019 Measures)) Act 2019
apply in relation to a
26
contract entered into on or after the commencement of that
27
Schedule.
28
(2) The amendments do not apply to a contract entered into before the
29
commencement of that Schedule. However:
30
(a) if the contract is renewed on or after that commencement--
31
the amendments apply to the contract as renewed, on and
32
Unfair contract terms in insurance contracts
Schedule 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
5
from the day (the
renewal day
) on which the renewal takes
1
effect, in relation to conduct that occurs on or after the
2
renewal day; or
3
(b) if a term of the contract is varied on or after that
4
commencement and paragraph (a) has not already applied in
5
relation to the contract--the amendments apply to the term as
6
varied, on and from the day (the
variation day
) on which the
7
variation takes effect, in relation to conduct that occurs on
8
and after the variation day.
9
(3) If paragraph (2)(b) of this section applies to a term of a contract,
10
subsection 12BF(2) and section 12BK of this Act apply to the
11
contract.
12
(4) Despite paragraphs (2)(a) and (b) and subsection (3) of this section,
13
the amendments do not apply to a contract, or a term of a contract,
14
to the extent that the operation of the amendments would result in
15
an acquisition of property (within the meaning of
16
paragraph 51(xxxi) of the Constitution) from a person otherwise
17
than on just terms (within the meaning of that paragraph of the
18
Constitution).
19
Insurance Contracts Act 1984
20
8 At the end of section 12
21
Add:
22
Note:
This Part operates in addition to the unfair contract terms provisions of
23
the
Australian Securities and Investments Commission Act 2001
(see
24
paragraph 15(2)(d) of this Act).
25
9 Subsection 15(2)
26
Omit all the words after "but does not", substitute:
27
include:
28
(c) relief in the form of compensatory damages; or
29
(d) relief relating to the effect of section 12BF (unfair contract
30
terms) of the
Australian Securities and Investments
31
Commission Act 2001
.
32
Note:
See Subdivision G (enforcement and remedies) of Division 2 of Part 2
33
of the
Australian Securities and Investments Commission Act 2001
for
34
certain remedies relating to the effect of section 12BF of that Act.
35
Schedule 1
Unfair contract terms in insurance contracts
6
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
10 Application of amendments of the
Insurance Contracts
1
Act 1984
2
The amendments of the
Insurance Contracts Act 1984
made by this
3
Schedule apply in the same way as the amendments of the
Australian
4
Securities and Investments Commission Act 2001
made by this
5
Schedule.
6
Note:
See Part 29 of the
Australian Securities and Investments Commission Act 2001
.
7
Funeral expenses facilities
Schedule 2
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
7
Schedule 2--Funeral expenses facilities
1
2
Australian Securities and Investments Commission Act 2001
3
1 At the end of section 12BAA
4
Add:
5
(10) To avoid doubt, a
funeral expenses facility
is not a
funeral benefit
6
for the purposes of this Act.
7
Corporations Act 2001
8
2 Section 761A (at the end of the definition of
funeral benefit
)
9
Note:
A
funeral expenses facility
is not a
funeral benefit
: see section 765B.
10
3 Section 761A
11
Insert:
12
funeral expenses facility
means a scheme or arrangement for the
13
provision of benefits consisting of the payment of money, on the
14
death of a person, for the purpose of meeting the whole or a part of
15
the expenses of and incidental to the funeral, burial or cremation of
16
the person.
17
4 At the end of Subdivision D of Division 3 of Part 7.1
18
Add:
19
765B Funeral expenses facilities are not funeral benefits
20
To avoid doubt, a
funeral expenses facility
is not a
funeral benefit
21
for the purposes of this Act.
22
Schedule 3
Mortgage brokers
Part 1
Main amendments
8
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
Schedule 3--Mortgage brokers
1
Part 1--Main amendments
2
National Consumer Credit Protection Act 2009
3
1 Subsection 5(1)
4
Insert:
5
associate
: see section 15A.
6
2 Subsection 5(1) (at the end of the definition of
commission
)
7
Add:
8
Note:
Commissions may be conflicted remuneration: see Division 4 of
9
Part 3-5A.
10
3 Subsection 5(1)
11
Insert:
12
conflicted remuneration
: see sections 158N and 158NA.
13
mortgage broker
: see section 15B.
14
mortgage intermediary
: see section 15C.
15
4 After section 15
16
Insert:
17
15A Meaning of
associate
18
(1) If a person is associated with a credit provider for the purposes of
19
the National Credit Code:
20
(a) the person is an
associate
of the credit provider; and
21
(b) the credit provider is an
associate
of the person.
22
(2) In any other case, a person is an
associate
of another person in the
23
circumstances prescribed by the regulations.
24
Mortgage brokers
Schedule 3
Main amendments
Part 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
9
15B Meaning of
mortgage broker
1
(1) A licensee is a
mortgage broker
if:
2
(a) the licensee carries on a business of providing credit
3
assistance in relation to credit contracts secured by mortgages
4
over residential property; and
5
(b) the licensee does not perform the obligations, or exercise the
6
rights, of a credit provider in relation to the majority of those
7
credit contracts; and
8
(c) in carrying on the business, the licensee provides credit
9
assistance in relation to credit contracts offered by more than
10
one credit provider.
11
(2) A credit representative of a licensee is a
mortgage broker
if:
12
(a) the credit representative carries on a business of providing
13
credit assistance in relation to credit contracts secured by
14
mortgages over residential property; and
15
(b) neither the credit representative nor the licensee performs the
16
obligations, or exercises the rights, of a credit provider in
17
relation to the majority of those credit contracts; and
18
(c) in carrying on the business, the credit representative provides
19
credit assistance in relation to credit contracts offered by
20
more than one credit provider.
21
15C Meaning of
mortgage intermediary
22
(1) A licensee is a
mortgage intermediary
if:
23
(a) the licensee carries on a business of acting as an intermediary
24
in relation to credit contracts secured by mortgages over
25
residential property; and
26
(b) the licensee does not perform the obligations, or exercise the
27
rights, of a credit provider in relation to the majority of those
28
credit contracts; and
29
(c) in carrying on the business, the licensee acts as an
30
intermediary in relation to credit contracts offered by more
31
than one credit provider.
32
(2) A credit representative of a licensee is a
mortgage intermediary
if:
33
Schedule 3
Mortgage brokers
Part 1
Main amendments
10
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
(a) the credit representative carries on a business of acting as an
1
intermediary in relation to credit contracts secured by
2
mortgages over residential property; and
3
(b) neither the credit representative nor the licensee performs the
4
obligations, or exercises the rights, of a credit provider in
5
relation to the majority of those credit contracts; and
6
(c) in carrying on the business, the credit representative acts as
7
an intermediary in relation to credit contracts offered by more
8
than one credit provider.
9
5 After Part 3-5
10
Insert:
11
Part 3-5A--Mortgage brokers and mortgage
12
intermediaries
13
Division 1--Introduction
14
Subdivision A--Guide to this Part
15
158K Guide to this Part
16
This Part imposes obligations on mortgage brokers and mortgage
17
intermediaries.
18
Mortgage brokers must act in the best interests of consumers when
19
providing credit assistance in relation to credit contracts.
20
Where there is a conflict of interest, mortgage brokers must give
21
priority to consumers in providing credit assistance in relation to
22
credit contracts.
23
Mortgage brokers and mortgage intermediaries must not accept
24
conflicted remuneration.
25
Employers, credit providers and mortgage intermediaries must not
26
give conflicted remuneration to mortgage brokers or mortgage
27
intermediaries.
28
Mortgage brokers
Schedule 3
Main amendments
Part 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
11
The circumstances in which these bans on conflicted remuneration
1
apply are to be set out in the regulations.
2
Subdivision B--Interpretation
3
158KA Doing acts
4
A reference in this Part to doing an act or thing includes a
5
reference to causing or authorising the act or thing to be done.
6
158KB Circumstances in which a secondary representative is taken
7
to be acting within actual or apparent authority
8
(1) This section applies if a person (the
secondary representative
) is
9
authorised as a credit representative of a licensee by a credit
10
representative that is a body corporate (the
primary
11
representative
).
12
(2) For the purposes of this Part, the secondary representative is taken
13
to be acting within the scope of the secondary representative's
14
actual or apparent authority from the licensee if the secondary
15
representative is acting within the actual or apparent scope of the
16
authority given by the primary representative to engage in
17
specified credit activities on behalf of the licensee.
18
158KC Obligations under this Part in addition to other obligations
19
The obligations imposed on a person under this Part are in addition
20
to any other obligations to which the person is subject under this
21
Act or any other law.
22
Schedule 3
Mortgage brokers
Part 1
Main amendments
12
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
Division 2--Best interests obligations
1
Subdivision A--Licensees that provide credit assistance in
2
relation to credit contracts
3
158L Application of this Subdivision
4
(1) This Subdivision applies in relation to credit assistance provided
5
by a licensee to a consumer in relation to a credit contract if the
6
licensee is a mortgage broker.
7
(2) However, this Subdivision does not apply in relation to credit
8
assistance provided to a consumer in relation to a credit contract by
9
a credit representative acting within the scope of the credit
10
representative's actual or apparent authority from the licensee.
11
Note 1:
A credit representative in these circumstances is covered by
12
Subdivision B of this Division.
13
Note 2:
The conduct of any other representative, acting within the scope of
14
actual or apparent authority from the licensee, is taken to have been
15
engaged in also by the licensee: see sections 324 and 325.
16
158LA Licensee must act in the best interests of the consumer
17
The licensee must act in the best interests of the consumer in
18
relation to the credit assistance.
19
Civil penalty:
5,000 penalty units.
20
158LB Conflict between consumer's interests and those of the
21
licensee etc.
22
If the licensee knows, or reasonably ought to know, that there is a
23
conflict between the interests of the consumer and the interests of:
24
(a) the licensee; or
25
(b) an associate of the licensee; or
26
(c) a representative of the licensee; or
27
(d) an associate of a representative of the licensee;
28
the licensee must give priority to the consumer's interests when
29
providing the credit assistance.
30
Mortgage brokers
Schedule 3
Main amendments
Part 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
13
Civil penalty:
5,000 penalty units.
1
Subdivision B--Credit representatives that provide credit
2
assistance in relation to credit contracts
3
158LD Application of this Subdivision
4
This Subdivision applies in relation to credit assistance provided to
5
a consumer in relation to a credit contract by a credit representative
6
acting within the scope of the credit representative's actual or
7
apparent authority from a licensee, if either the credit
8
representative or the licensee is a mortgage broker.
9
158LE Credit representative must act in the best interests of the
10
consumer
11
(1) The credit representative must act in the best interests of the
12
consumer in relation to the credit assistance.
13
Civil penalty:
5,000 penalty units.
14
(2) The licensee must take reasonable steps to ensure that the credit
15
representative complies with subsection (1).
16
Civil penalty:
5,000 penalty units.
17
158LF Conflict between consumer's interests and those of the credit
18
representative etc.
19
(1) If the credit representative knows, or reasonably ought to know,
20
that there is a conflict between the interests of the consumer and
21
the interests of:
22
(a) the licensee; or
23
(b) an associate of the licensee; or
24
(c) the credit representative; or
25
(d) an associate of the credit representative; or
26
(e) another representative of the licensee; or
27
(f) an associate of another representative of the licensee;
28
the credit representative must give priority to the consumer's
29
interests when providing the credit assistance.
30
Schedule 3
Mortgage brokers
Part 1
Main amendments
14
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
Civil penalty:
5,000 penalty units.
1
(2) The licensee must take reasonable steps to ensure that the credit
2
representative complies with subsection (1).
3
Civil penalty:
5,000 penalty units.
4
Division 4--Conflicted remuneration
5
Subdivision A--What is conflicted remuneration?
6
158N
Conflicted remuneration
7
Conflicted remuneration
means:
8
(a) any benefit, whether monetary or non-monetary, that:
9
(i) is given to a licensee, or a representative of a licensee,
10
who provides credit assistance to consumers; and
11
(ii) because of the nature of the benefit or the circumstances
12
in which it is given, could reasonably be expected to
13
influence the credit assistance provided to consumers;
14
or
15
(b) any benefit, whether monetary or non-monetary, that:
16
(i) is given to a licensee, or a representative of a licensee,
17
who acts as an intermediary; and
18
(ii) because of the nature of the benefit or the circumstances
19
in which it is given, could reasonably be expected to
20
influence whether the licensee or representative acts as
21
an intermediary, or how the licensee or representative
22
acts as an intermediary.
23
158NA Regulations may further define
conflicted remuneration
24
The regulations may prescribe:
25
(a) circumstances, in addition to those set out in section 158N, in
26
which a benefit given to a licensee or a representative of a
27
licensee is
conflicted remuneration
; and
28
(b) circumstances in which a benefit given to a licensee or a
29
representative of a licensee is not
conflicted remuneration
.
30
Mortgage brokers
Schedule 3
Main amendments
Part 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
15
Subdivision B--Ban on accepting conflicted remuneration
1
158NB Licensee must not accept conflicted remuneration
2
A licensee must not accept conflicted remuneration in
3
circumstances prescribed by the regulations if:
4
(a) the licensee is a mortgage broker; or
5
(b) the licensee is a mortgage intermediary.
6
Civil penalty:
5,000 penalty units.
7
158NC Credit representative must not accept conflicted
8
remuneration
9
(1) A credit representative of a licensee must not accept conflicted
10
remuneration in circumstances prescribed by the regulations if the
11
credit representative or the licensee is:
12
(a) a mortgage broker; or
13
(b) a mortgage intermediary.
14
Civil penalty:
5,000 penalty units.
15
(2) The licensee must take reasonable steps to ensure that the credit
16
representative complies with subsection (1).
17
Civil penalty:
5,000 penalty units.
18
Subdivision C--Ban on giving conflicted remuneration
19
158ND Employer must not give employees conflicted remuneration
20
(1) An employer of a licensee must not give the licensee conflicted
21
remuneration in circumstances prescribed by the regulations if the
22
licensee is:
23
(a) a mortgage broker; or
24
(b) a mortgage intermediary.
25
Civil penalty:
5,000 penalty units.
26
Schedule 3
Mortgage brokers
Part 1
Main amendments
16
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
(2) An employer of a representative of a licensee must not give the
1
representative conflicted remuneration in circumstances prescribed
2
by the regulations if the licensee or the representative is:
3
(a) a mortgage broker; or
4
(b) a mortgage intermediary.
5
Civil penalty:
5,000 penalty units.
6
158NE Credit provider must not give conflicted remuneration
7
(1) A credit provider must not give a licensee conflicted remuneration
8
in circumstances prescribed by the regulations if the licensee is:
9
(a) a mortgage broker; or
10
(b) a mortgage intermediary.
11
Civil penalty:
5,000 penalty units.
12
(2) A credit provider must not give a representative of a licensee
13
conflicted remuneration in circumstances prescribed by the
14
regulations if the licensee or the representative is:
15
(a) a mortgage broker; or
16
(b) a mortgage intermediary.
17
Civil penalty:
5,000 penalty units.
18
158NF Mortgage intermediary must not give conflicted
19
remuneration
20
(1) A mortgage intermediary must not give a licensee conflicted
21
remuneration in circumstances prescribed by the regulations if the
22
licensee is:
23
(a) a mortgage broker; or
24
(b) a mortgage intermediary.
25
Civil penalty:
5,000 penalty units.
26
(2) A mortgage intermediary must not give a representative of a
27
licensee conflicted remuneration in circumstances prescribed by
28
the regulations if the licensee or the representative is:
29
(a) a mortgage broker; or
30
(b) a mortgage intermediary.
31
Mortgage brokers
Schedule 3
Main amendments
Part 1
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
17
Civil penalty:
5,000 penalty units.
1
Division 6--Miscellaneous
2
158T Anti-avoidance
3
A person must not, either alone or together with one or more other
4
persons, enter into, begin to carry out or carry out a scheme if:
5
(a) it would be concluded that the person, or any of the persons,
6
who entered into, began to carry out or carried out the
7
scheme or any part of the scheme did so for the sole purpose
8
or for a purpose (that is not incidental) of avoiding the
9
application of any provision of this Part in relation to any
10
person or persons (whether or not a person or persons who
11
entered into, began to carry out or carried out the scheme or
12
any part of the scheme); and
13
(b) the scheme or the part of the scheme has achieved, or apart
14
from this section, would achieve, that purpose.
15
Civil penalty:
5,000 penalty units.
16
National Consumer Credit Protection (Transitional and
17
Consequential Provisions) Act 2009
18
6 In the appropriate position
19
Insert:
20
Schedule 10--Application provisions for
21
Schedule 3 to the Financial Sector
22
Reform (Hayne Royal Commission
23
Response--Protecting Consumers
24
(2019 Measures)) Act 2019
25
26
1 Definitions
27
In this Schedule:
28
Schedule 3
Mortgage brokers
Part 1
Main amendments
18
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
amending Act
means the
Financial Sector Reform (Hayne Royal
1
Commission Response--Protecting Consumers (2019 Measures)) Act
2
2019
.
3
2 Application of best interests obligations
4
Division 2 of Part 3-5A of the National Credit Act, as inserted by item 5
5
of Schedule 3 to the amending Act, applies in relation to the provision
6
of credit assistance to a consumer on or after 1 July 2020 (whether or
7
not the assistance was sought, or commenced being provided, before
8
that day).
9
3 Application of ban on conflicted remuneration
10
(1)
Subject to subitem (2), Division 4 of Part 3-5A of the National Credit
11
Act, as inserted by item 5 of Schedule 3 to the amending Act, applies to
12
a benefit given on or after 1 July 2020 to a licensee, or a representative
13
of a licensee, if the benefit is given under an arrangement entered into
14
on or after 1 July 2020.
15
(2)
The regulations may prescribe circumstances in which that Division
16
applies, or does not apply, to a benefit given to a licensee or a
17
representative of a licensee.
18
Mortgage brokers
Schedule 3
Consequential amendments
Part 2
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
19
Part 2--Consequential amendments
1
National Consumer Credit Protection Act 2009
2
7 Subsection 5(1)
3
Insert:
4
indirect remuneration
means a commission or conflicted
5
remuneration.
6
8 Paragraph 92(e)
7
Omit "commissions" (wherever occurring), substitute "indirect
8
remuneration".
9
9 Section
111 (paragraph beginning "Division 5")
10
Omit "commission", substitute "indirect remuneration".
11
10 Subparagraph 113(2)(g)(i)
12
Omit "commissions", substitute "indirect remuneration".
13
11 Subparagraph 113(2)(g)(ii)
14
Omit "those commissions", substitute "that indirect remuneration".
15
12 Subparagraphs 113(3)(b)(i) and (ii)
16
Omit "commissions" (wherever occurring), substitute "indirect
17
remuneration".
18
13 Division 5 of Part 3-1 of Chapter 3 (heading)
19
Omit "
commissions
", substitute "
indirect remuneration
".
20
14 Section 121 (heading)
21
Omit "
commissions
", substitute "
indirect remuneration
".
22
15 Paragraph 121(2)(b)
23
Omit "commissions", substitute "indirect remuneration".
24
Schedule 3
Mortgage brokers
Part 2
Consequential amendments
20
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
No. , 2019
16 Paragraphs 121(3)(a) and (b)
1
Omit "commissions", substitute "indirect remuneration".
2
17 Section
134 (paragraph beginning "Division 5")
3
Omit "commission", substitute "indirect remuneration".
4
18 Subparagraph 136(2)(g)(i)
5
Omit "commissions", substitute "indirect remuneration".
6
19 Subparagraph 136(2)(g)(ii)
7
Omit "those commissions", substitute "that indirect remuneration".
8
20 Subparagraphs 136(3)(b)(i) and (ii)
9
Omit "commissions" (wherever occurring), substitute "indirect
10
remuneration".
11
21 Division 5 of Part 3-3 of Chapter 3 (heading)
12
Omit "
commissions
", substitute "
indirect remuneration
".
13
22 Section 144 (heading)
14
Omit "
commissions
", substitute "
indirect remuneration
".
15
23 Paragraph 144(2)(b)
16
Omit "commissions", substitute "indirect remuneration".
17
24 Paragraphs 144(3)(a) and (b)
18
Omit "commissions", substitute "indirect remuneration".
19
25 Subparagraph 158(2)(g)(i)
20
Omit "commissions", substitute "indirect remuneration".
21
26 Subparagraph 158(2)(g)(ii)
22
Omit "those commissions", substitute "that indirect remuneration".
23
27 Subparagraphs 158(3)(b)(i) and (ii)
24
Omit "commissions" (wherever occurring), substitute "indirect
25
remuneration".
26
Mortgage brokers
Schedule 3
Consequential amendments
Part 2
No. , 2019
Financial Sector Reform (Hayne Royal Commission Response--
Protecting Consumers (2019 Measures)) Bill 2019
21
28 Subparagraph 160B(2)(a)(i)
1
Omit "commissions (apart from commissions that are", substitute
2
"indirect remuneration (apart from indirect remuneration that is".
3
29 Paragraph 160B(2)(d)
4
Omit "commission", substitute "indirect remuneration".
5