Document ID: chunk:federal_register_of_legislation:F2024C00882:clause:2_45:p3
Version: federal_register_of_legislation:F2024C00882
Segment Type: clause
Provision Reference: sch 2 cl 45 (pt 3/8)
Character Range: 489779–492710

not a member of the AFCA scheme must lodge with ASIC an audit report, prepared by a suitably qualified person and in accordance with subsection (10), about whether the lender has complied with the following requirements in relation to a carried over instrument for the lender:
 (a) if the carried over instrument is a credit contract—the requirements mentioned in section 17 of the National Credit Code;
 (b) if the carried over instrument is a consumer lease—the requirements mentioned in section 174 of the National Credit Code.
Civil penalty: 5,000 penalty units.

2.24  Subsections 49(5) and (6)
omit each mention of
licensee
insert
unlicensed carried over instrument lender

2.25  After subsection 49(9)
insert

When audit report due
 (10) For subsection (3A), the unlicensed carried over instrument lender must lodge the audit report with ASIC on or before 31 December 2010. ASIC may extend the day by giving written notice to the lender.

2.26  Subsections 50(1) and (2), including subsection headings and penalty
substitute

Requirement to give information
 (1) ASIC may request an unlicensed carried over instrument lender to give ASIC information about the registers the lender is required to keep under paragraph 47(1)(f).
 (2) If ASIC requests the lender give ASIC the information mentioned in subsection (1), the lender must give ASIC the information.
Civil penalty: 5,000 penalty units.

2.26A  Subsection 51(1)
omit each mention of
licensee
insert
unlicensed carried over instrument lender

2.27  Section 52
substitute

       52  Obligation to lodge certain matters with ASIC

Requirement to lodge report of contravention or likely contravention
 (1) If an unlicensed carried over instrument lender is not a member of the AFCA scheme and the lender becomes aware of a contravention, or a likely contravention, mentioned in subsection (2), the lender must lodge a written report with ASIC on the matter:
 (a) as soon as practicable; and
 (b) in any case no later than 10 business days after becoming aware of the contravention or likely contravention.
Civil penalty: 5,000 penalty units.

When there is a contravention or likely contravention
 (2) For the purposes of subsection (1), there is a contravention, or a likely contravention, if:
 (a) the unlicensed carried over instrument lender contravenes, or is likely to contravene, this Act, the Transitional Act or the ASIC Act; and
 (b) the contravention, or likely contravention, is significant having regard to the following:
 (i) the number and frequency of similar previous contraventions;
 (ii) the impact of the contravention, or likely contravention, on the lender's ability to engage in the credit activities;
 (iii) the extent to which the contravention, or likely contravention, indicates that the lender's arrangements to ensure compliance with its obligations under this Part are inadequate;
 (iv) the actual or potential financial loss to consumers,