Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation is made for the following provisions of the Act:
(a) subsection 121(3A) (credit proposal disclosure document of credit assistance providers for credit contracts);
(b) subsection 144(3A) (lease proposal disclosure document of credit assistance providers for consumer leases).
Mortgage managers
(2) Subregulation (3) applies to indirect remuneration worked out on the difference between the interest rate charged to the mortgage manager by the credit provider or lessor and the interest rate payable by the consumer.
(3) The information mentioned in subparagraph 28G(2)(a)(v) and paragraphs 28G(2)(c) and (d) need not be included for the indirect remuneration in the mortgage manager's proposal disclosure document if all of the following apply:
(a) the mortgage manager provided credit assistance to the consumer in relation to a managed contract;
(b) the mortgage manager told the consumer:
(i) about the mortgage manager's written agreement with the credit provider, lessor or third party; and
(ii) that the mortgage manager is not acting for the consumer in relation to the managed contract;
(c) the maximum cost of the managed contract at the time the mortgage manager provides the credit assistance, and the interest rate to be charged, are published on the credit provider's or lessor's website;
(d) the mortgage manager cannot increase the interest rate above the interest rate that is published under paragraph (c).
Product designers
(4) A product designer's proposal disclosure document need not include the information mentioned in subparagraph 28G(2)(a)(v) and paragraphs 28G(2)(c) and (d) for indirect remuneration worked out in relation to the net profit from operating the pool of funds from which credit contracts or consumer leases are provided.
Trail commissions
(5) For trail commission that is payable in more than one instalment, the licensee's proposal disclosure document need not contain the information mentioned in subparagraph 28G(2)(a)(v) or paragraph 28G(2)(c) if:
(a) the proposal disclosure document includes a reasonable estimate of the highest instalment of trail commission the licensee can expect to receive; and
(b) the highest instalment of trail commission is expressed in accordance with paragraph 28G(2)(b); and
(c) the following assumptions apply to the calculation of the highest instalment of trail commission:
(i) the assumptions mentioned in subregulation 28G(5); or
(ii) other assumptions set out in the licensee's proposal disclosure document.