National Consumer Credit Protection Act. Australia
activities on behalf of the licensee.
2) A natural person who is authorised under subsection (1) is a credit representative of the relevant licensee.
3) The credit activities specified may be some or all of the credit activities authorised by the licensee’s licence.
Licensee must give consent to authorisation
4) The authorisation can only be given if the licensee gives the body corporate its written consent to the authorisation. The licensee may give consent in relation to either a specified natural person or a specified class of natural persons (the membership of which might change from time to time).
When authorisation is of no effect
5) The authorisation:
a) is of no effect if subsection (6) applies to it when it is given; and
b) ceases to have effect if and when subsection (6) starts to apply to it after it is given;
to the extent that subsection (6) applies.
6) This subsection applies to the authorisation to the extent that it purports to authorise:
a) a natural person to engage in a credit activity that is not authorised by the licensee’s licence; or
b) a natural person to engage in a credit activity, and a banning order or disqualification order under Part 2–4 is in force against the natural person in relation to the credit activity; or
c) a natural person who is not a member of an approved external dispute resolution scheme; or
d) a natural person who is banned from engaging in a credit activity under a law of a State or Territory; or
e) a natural person who has been convicted, within the last 10 years, of serious fraud; or
f) a natural person against whom a prescribed State or Territory order is in force; or
g) a natural person in relation to the authorisation of whom the licensee has not given its written consent in accordance with subsection (4).
7) To avoid doubt, an authorisation under subsection (1) is taken, for the purposes of sections 66 to 72, to be given by the body corporate, not the licensee.
66 Credit representative of 2 or more licensees
1) One person can be the credit representative of 2 or more licensees, but only if:
a) each of those licensees has consented to the person also being the credit representative of each of the other licensees; or
b) each of the licensees is a related body corporate of each of the other licensees.
2) An authorisation:
a) is of no effect if it contravenes subsection (1) when it is given; and
b) ceases to have effect if and when it starts to contravene subsection (1) after it is given.
67 A person cannot be a credit representative in relation to credit activities authorised by a person’s licence
1) A person must not authorise another person to engage in a credit activity as a credit representative under subsection 64(1) or 65(1) if the other person holds a licence authorising the person to engage in the credit activity.
2) An authorisation:
a) is of no effect if it contravenes subsection (1) when it is given; and
b) ceases to have effect if and when it starts to contravene subsection (1) after it is given.
68 Variation and revocation of authorisations and sub-authorisations
Variation and revocation of authorisations
1) An authorisation under subsection 64(1) may be varied or revoked at any time by the licensee giving written notice to the credit representative.
Variation and revocation of sub-authorisations
2) An authorisation under subsection 65(1) may be varied or revoked at any time by:
a) the licensee in relation to whom the authorisation was given; or
b) the body corporate that gave the authorisation;
giving written notice to the credit representative.
3) If a person varies or revokes an authorisation under subsection (2), that person must give the other person who could have varied or revoked the authorisation written notice of the variation or revocation.
69 Obligation not to give authorisation that has no effect
Requirement not to give authorisation
1) A person must not purport to authorise a credit representative under subsection 64(1) or 65(1) if, at the time the person first purports to give the authorisation, it is of no effect, to any extent, under this Division.
Civil penalty: 2,000 penalty units.
Offence
2) A person commits an offence if:
a) the person is subject to a requirement under subsection (1); and
b) the person engages in conduct; and
c) the conduct contravenes the requirement.
Criminal penalty: 100 penalty units, or 2 years imprisonment, or both.
70 Obligation to vary or revoke authorisation that ceases to have effect
Requirement to vary or revoke authorisation
1) If a person:
a) has authorised a credit representative under subsection 64(1) or 65(1); and
b) becomes aware of a matter because of which the authorisation of the credit representative has ceased to have effect under this Division;
the person must, as soon as practicable:
c) revoke the authorisation; or
d) vary the authorisation so that it is no longer, to any extent, of no effect under this Division.
Civil penalty: 2,000 penalty units.
Offence
2) A person commits an offence if:
a) the person is required to vary or revoke an authorisation under subsection (1); and
b) the person engages in conduct; and
c) the conduct contravenes subsection (1).
Criminal penalty: 100 penalty units, or 2 years imprisonment, or both.
71 Obligation to notify ASIC etc. about credit representatives
Requirement to notify ASIC when credit representative authorised
1) If a person authorises a credit representative under subsection 64(1) or 65(1), the person must, within 15 business days of the authorisation, lodge with ASIC a written notice in accordance with subsection (3).
Civil penalty: 2,000 penalty units.
Requirement to notify licensee of sub-authorisation
2) If:
a) a person authorises a natural person as a credit representative of a licensee under subsection 65(1) (which deals with sub-authorisations); and
b) the consent of the licensee to the authorisation was given in relation to a specified class of natural persons;
then the person must, within 15 business days of the authorisation, give the licensee written notice of the authorisation in accordance with subsection (3).
Civil penalty: 2,000 penalty units.
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