Document ID: chunk:federal_register_of_legislation:F2018C00776:reg:6:p1
Version: federal_register_of_legislation:F2018C00776
Segment Type: reg
Provision Reference: reg 6 (pt 1/6)
Character Range: 777–3704

6  Application
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument
This is the ASIC Credit (Flexible Credit Cost Arrangements) Instrument 2017/780.

2 Commencement
This instrument commences on 1 November 2018.

3 Authority
This instrument is made under paragraph 109(3)(d) of the National Consumer Credit Protection Act 2009.

4 Definitions
In this instrument:
Act means the National Consumer Credit Protection Act 2009.
       exempt special purpose funding entity has the same meaning as in regulation 3 of the National Consumer Credit Protection Regulations 2010.

Part 2—Declaration

5 Modification to prohibit the provision of flex-commissions
The provisions to which Part 2-6 of the Act applies apply in relation to a licensee and an exempt special purpose funding entity as if:
           (a) subsection 5(1) of the Act were modified or varied by inserting the following definitions in the appropriate alphabetical position:
           "annual percentage rate has the meaning given by section 204 of the National Credit Code.";
           "associated person means, in relation to a person (primary person), a person who is:
(a) an associate of the primary person for the purposes of Division 2 of Part 1.2 of the Corporations Act 2001; or
(b) an officer, agent or employee of the primary person, or of a person referred to in paragraph (a).";
           "consumer lease fees or charges has the meaning given by section 204 of the National Credit Code.";
           "credit fees and charges has the meaning given by section 204 of the National Credit Code.";
           "determines, proposes or influences, when used in relation to a person determining, proposing or influencing the amount of an annual percentage rate or a rental charge in relation to a credit contract or a consumer lease does not include the person:
(a) merely proposing or influencing:
                  (i) in the case of a credit contract that is provided for the purposes of purchasing goods—the type or identity of the goods to be purchased; or
                  (ii) in the case of a consumer lease—the type or identity of the goods to be rented under the consumer lease; or
(b) merely providing the credit provider or lessor with information about any of the following:
                  (i) the requirements and objectives of the debtor or lessee in relation to the credit contract or consumer lease;
                  (ii) the financial situation of the debtor or lessee; or
(c) merely providing the credit provider or lessor with other factual information provided by, or about, the debtor or lessee; or
(d) determining, proposing or influencing the amount of the annual percentage rate or rental charge (as the case may be) before the first to occur of:
                  (i) any contact between the debtor or lessee and the person or an associated person in relation to