Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:24:p1
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 24 (pt 1/4)
Character Range: 118056–120710

24  Activities exempt from being credit activities
 (1) For the purposes of paragraphs 110(1)(b) and (c) of the Act, this regulation:
 (a) exempts certain credit activities, or classes of credit activities, from all of the provisions to which Part 2‑6 of the Act applies; and
 (b) modifies specified provisions for the purposes of the exemption mentioned in paragraph (a).
Note: Section 108 of the Act identifies the provisions to which Part 2‑6 of the Act applies.
 (2) Subject to subregulation (3), the following credit activities are exempted:
 (a) the providing of credit assistance by a lawyer in his or her professional capacity in relation to matters of law, legal interpretation or the application of the law to any facts;
 (b) the providing of any credit assistance not mentioned in paragraph (a) by a lawyer in the ordinary course of activities as a lawyer that is reasonably regarded as a necessary part of those activities.
 (3) For subregulation (2), the credit activity is exempted only if the lawyer providing the credit assistance does not hold out or advertise to consumers that he or she is able to provide credit services.
 (4) Subject to subregulation (4A), a credit activity, other than the provision of credit assistance mentioned in subregulation (2), is exempted if it is engaged in by a lawyer in the following circumstances:
 (a) the lawyer is acting:
 (i) on the instructions of a client, an associate of the client or a relative of the client; and
 (ii) in his or her professional capacity; and
 (iii) in the ordinary course of his or her activities as a lawyer;
 (b) the credit activity can reasonably be regarded as a necessary part of those activities;
 (c) the lawyer has not received, and will not receive, from the client or from another person on behalf of the client a benefit in connection with those activities other than:
 (i) the payment of professional charges in relation to those activities; and
 (ii) reimbursement for expenses incurred or payment on account of expenses to be incurred on behalf of the client, an associate of the client or a relative of the client;
 (d) the lawyer does not hold out or advertise to consumers that he or she is able to provide credit services or debt management services.
 (4A) For the purposes of subregulation (4), the credit activity is not exempted if:
 (a) the credit activity is the provision of a debt management service; and
 (b) a third party holds out or advertises to consumers that the lawyer is able to provide a debt management service; and
 (c) there is an arrangement between the third party and the lawyer by which the third party regularly refers persons for