Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:28g:p1
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 28G (pt 1/3)
Character Range: 166645–169556

28G  Proposal disclosure document—information about indirect remuneration
 (1) This regulation is made for the following provisions of the Act:
 (a) paragraph 121(2)(f) and subsections 121(3) and (3A) (credit proposal disclosure document of credit assistance providers for credit contracts);
 (b) paragraph 144(2)(e) and subsections 144(3) and (3A) (lease proposal disclosure document of credit assistance providers for consumer leases).
 (2) A description of the amounts of indirect remuneration must include the following:
 (a) for each kind of indirect remuneration forming part of the total amount of indirect remuneration, a detailed description of the indirect remuneration, including the following:
 (i) identification of each kind of indirect remuneration as indirect remuneration;
 (ii) a clear explanation of the kind of indirect remuneration;
 (iii) the person by whom each kind of indirect remuneration is payable;
 (iv) the person to whom each kind of indirect remuneration is payable;
 (v) a reasonable estimate of the amount of each kind of indirect remuneration, expressed as required by paragraph (b);
Example for subparagraph (ii)
       Indirect remuneration that is a benefit described as an advertising subsidy or attendance at a conference.
 (b) the reasonable estimate of the amount of each kind of indirect remuneration must be expressed in one of the following ways:
 (i) in dollars;
 (ii) as a proportion of the amount borrowed or total rental payments and a dollar amount;
 (iii) as a range of amounts, expressed in dollars;
 (iv) as a percentage of the amount borrowed or total rental payments and a dollar amount;
 (v) if the indirect remuneration is in the form of a benefit—the estimated value of the benefit, expressed in dollars;
 (c) a reasonable estimate of the total amount of indirect remuneration, expressed in dollars, likely to be received by each of the following:
 (i) the licensee;
 (ii) a credit representative of the licensee;
 (d) a reasonable estimate of the total amount of indirect remuneration, expressed in dollars and based on the amounts estimated for each kind of indirect remuneration forming part of the total amount of indirect remuneration.
 (3) The information mentioned in subregulation (2) must be set out in a way that is easy for the consumer to understand without being required to do any working out or to look elsewhere for additional information.

Information not required to be included
 (4) The proposal disclosure document need not contain the information mentioned in paragraph (2)(c) for an employee or a director of the licensee (even if the employee or director is a credit representative of the licensee).

Assumptions
 (5) For this regulation, a reasonable estimate of an amount of indirect remuneration may be made on the following assumptions:
 (a) that the consumer will enter into the credit contract or consumer lease on the terms