Document ID: chunk:federal_register_of_legislation:C2024C00826:section:51a
Version: federal_register_of_legislation:C2024C00826
Segment Type: section
Provision Reference: s 51A
Character Range: 154380–156335

51A  Reporting to consumers affected by a reportable situation

Notifying an affected consumer of a reportable situation
 (1) A licensee must take reasonable steps to notify a consumer (the affected consumer) of a reportable situation in accordance with this section if:
 (a) the licensee, or a representative of the licensee, provides or has provided credit assistance to the affected consumer in relation to a credit contract secured by a mortgage over residential property; and
 (b) the licensee, or the representative of the licensee, is a mortgage broker; and
 (c) there are reasonable grounds to believe that a reportable situation has arisen in relation to the licensee as mentioned in:
 (i) paragraph 50A(1)(a) (significant breach of a core obligation); or
 (ii) subsection 50A(2) (gross negligence or serious fraud); and
 (d) there are reasonable grounds to suspect that:
 (i) the affected consumer has suffered or will suffer loss or damage as a result of the reportable situation; and
 (ii) the affected consumer has a legally enforceable right to recover the loss or damage from the licensee.
Civil penalty: 5,000 penalty units.

Form and period for giving notice
 (2) A notice under this section must:
 (a) be given in writing within 30 days after the licensee first knows of, or is reckless with respect to, the circumstances mentioned in paragraphs (1)(a), (b), (c) and (d); and
 (b) if ASIC has approved the form in which the notice must be given:
 (i) be in the approved form; and
 (ii) include the information, statements, explanations or other matters required by the form; and
 (iii) be accompanied by any other material required by the form.

Qualified privilege
 (3) A licensee has qualified privilege in relation to a notice given under this section.
 (4) A licensee who has qualified privilege under subsection (3) in respect of conduct is also not liable for any action based on breach of confidence in relation to that conduct.