Document ID: chunk:federal_register_of_legislation:F2024C00882:clause:2_45:p1
Version: federal_register_of_legislation:F2024C00882
Segment Type: clause
Provision Reference: sch 2 cl 45 (pt 1/8)
Character Range: 484462–487369

45  Conditions for unlicensed carried over instrument lender
 (1) This section applies to an unlicensed carried over instrument lender who engages in a credit activity in relation to a carried over instrument.
 (2) The lender in relation to the credit activity in relation to the instrument is subject to the conditions prescribed in the regulations.

2.14  Section 46
omit

2.15  Part 2‑2, Division 5, heading
substitute

Division 5—General obligations

2.16  Section 47, heading
substitute

       47  General conduct obligations of unlicensed carried over instrument lender

2.17  Subsection 47(1)
substitute
 (1) An unlicensed carried over instrument lender must:
 (a) do all things necessary to ensure that the credit activities engaged in in relation to the carried over instrument are engaged in efficiently, honestly and fairly; and
 (b) have in place adequate arrangements to ensure that its clients are not disadvantaged by any conflict of interest in relation to a carried over instrument that may arise wholly or partly in relation to credit activities engaged in by it or its representatives; and
 (c) ensure that its representatives are adequately trained and competent to engage in the credit activities in relation to the carried over instrument; and
 (d) maintain its competence to engage in the credit activities in relation to the carried over instrument; and
 (e) have an internal dispute resolution procedure that:
 (i) complies with standards and requirements made or approved by ASIC in accordance with section 48; and
 (ii) covers disputes in relation to the credit activities the lender engages in in relation to the carried over instrument; and
 (f) if the lender is not a member of the AFCA scheme:
 (i) keep a register of complaints in relation to carried over instruments and include the information mentioned in subsection (1A); and
 (ii) keep a register of applications by a debtor for changes to the terms a credit contract under section 72 of the National Credit Code and include the information mentioned in subsection (1B); and
 (iii) keep a register of requests by a debtor, mortgagor or guarantor to negotiate a postponement of enforcement proceedings in relation to the credit contract, mortgage or guarantee under section 94 of the National Credit Code and include the information mentioned in subsection (1C); and
 (g) have adequate arrangements and systems to ensure compliance with its obligations under this section, and a written plan documenting those arrangements and systems; and
 (h) unless the unlicensed carried over instrument lender is a body regulated by APRA:
 (i) have adequate resources (including financial, technological and human resources) available so it can engage in credit activities in relation to the carried over instrument and to carry out supervisory arrangements; and
 (ii) have adequate risk management systems.
 (1A) For the purposes