Document ID: chunk:federal_register_of_legislation:F2018C00776:reg:6:p5
Version: federal_register_of_legislation:F2018C00776
Segment Type: reg
Provision Reference: reg 6 (pt 5/6)
Character Range: 12025–15191

in conduct; and
                     (c) the conduct contravenes the requirement.
                  Criminal penalty: 100 penalty units, or 2 years imprisonment, or both.
              53B  Obligation in relation to certain fees and charges
(1) Subject to subsection (5), a regulated person must not:
                     (a) in any case—give; or
                     (b) if paragraph 53A(1)(b) applies—engage in conduct that results in another regulated person giving;
the introducer under the flexible credit cost arrangement or an associated person any benefit, whether monetary or non-monetary, in relation to a credit contract or consumer lease if the following fees and charges exceed the specified fees and charges:
                     (c) in the case of a credit contract—credit fees and charges that are payable to the introducer, or an associated person, where the introducer or associated person is providing credit services in relation to the credit contract and is:
                         (i) providing the credit services as a representative of the credit provider for the credit contract; or
                         (ii) a linked supplier of the credit provider;
                     (d) in the case of a consumer lease—consumer lease fees and charges that are payable to the introducer, or an associated person, where the introducer or associated person is providing credit services in relation to the consumer lease and is:
                         (i) providing the credit services as a representative of the lessor under the lease; or
                         (ii)  a linked supplier of the lessor.
                  Note:  This would cover fees commonly described as "dealer origination fees" or "dealer administration fees" that enable the person providing credit services to recoup costs associated with providing those services.
                  Civil penalty: 2,000 penalty units.
(2) In this section, specified fees and charges means, in relation to a credit contract or consumer lease, the greater of $0 and the amount (if any) specified by a regulated person:
                     (a) before any determination, proposal or influence referred to in paragraph 53A(2)(d); and
                     (b) as the maximum amount of credit fees and charges or consumer lease fees and charges in respect of the credit contract or consumer lease that are of the type referred to in paragraph (1)(c) or (d).
                  (3)  Subject to subsection (5), the regulated person must not determine the amount of the specified fees and charges by reference to the loss or potential loss of revenue to the introducer, or an associated person, resulting from section 53A affecting the manner in which a benefit is able to be determined.
                 Civil penalty: 2,000 penalty units.
                  (4) Subject to subsection (5), a regulated person must keep written records of the basis for determining any specified fees and charges specified by the regulated person for a period of 7 years.
                 Civil penalty: 2,000 penalty units.
                  (5) Subsections (1), (3) and (4) do not apply in relation to a benefit given