Commonwealth Consolidated Acts Commonwealth Consolidated ActsMaking product intervention orders
(1) Subject to subsection (5), if ASIC is satisfied that:
(a) a person is engaging, or is likely to engage, in credit activity in relation to a credit contract, mortgage, guarantee or consumer lease ( credit product ) or a proposed credit product; and
(b) the credit product has resulted in, or will or is likely to result in, significant detriment to consumers;
ASIC may, in accordance with this Part, order that a specified person must not engage in specified conduct in relation to the product, either entirely or except in accordance with conditions specified in the order.
Note 1: Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.
Note 2: Section 301N also provides that product intervention orders may include requirements for notifying consumers.
(2) An order under subsection (1) is not a legislative instrument.
(3) Subject to subsection (5), if ASIC is satisfied that:
(a) a person is engaging, or is likely to engage, in credit activity in relation to a class of credit products or proposed credit products; and
(b) the class of products has resulted in, or will or is likely to result in, significant detriment to consumers;
ASIC may, in accordance with this Part and by legislative instrument, order that a person must not engage in specified conduct in relation to the class of products and consumers, either entirely or except in accordance with conditions specified in the order.
Note 1: Section 301E specifies matters to be taken into account in considering whether a credit product has resulted in, or will or is likely to result in, significant detriment to consumers.
Note 2: Section 301N also provides that product intervention orders may include requirements for notifying consumers.
Restrictions on product intervention orders
(4) A product intervention order must not specify any of the following f or subsection (1) or (3) :
(a) a condition that a person satisfy a standard of training, or meet a professional standard, other than a standard prescribed for the person by or under this Act;
(b) a condition that a person who is not required to hold an Australian credit licence become a member of an external dispute resolution scheme;
(c) a condition related to a person's remuneration, other than a condition related to:
(i) so much of the person's remuneration as is conditional on the achievement of objectives directly related to the credit product; or
(ii) a fee, charge or other consideration paid or payable to the person by a consumer.
(5) Conduct covered by a product intervention order must be limited to conduct in relation to a consumer.