Treasury Laws Amendment (Rationalising ASIC Instruments) Regulations 2022 (F2022L01629)

Schedule 1   Licensing exemptions for financial counselling agencies and financial capability service providers

National Consumer Credit Protection Regulations 2010

5   Subregulation 20(5)

Repeal the subregulation, substitute:

(5) A person is exempted if:

(a) the person (the financial counselling agency ) engages in a credit activity as part of the provision of a financial counselling service to a client; and

(b) no benefit (including any indirect remuneration) is payable to, or for the benefit of, the financial counselling agency, its representatives or its associates by any person in relation to any action by or on behalf of the client arising from the financial counselling service (including the engaging in of the credit activity); and

(c) no fees or charges (however described) are payable by or on behalf of the client in relation to the financial counselling service other than any fees or charges payable on behalf of the client by the Commonwealth, a State or a Territory; and

(d) the financial counselling agency:

(i) does not engage in any other kind of credit activity; and

(ii) takes all reasonable steps to ensure that none of its representatives engages in any other kind of credit activity; and

(e) the financial counselling agency takes all reasonable steps to ensure that each person who engages in credit activities on its behalf:

(i) is a member of, or is eligible to be a member of, a financial counselling association; and

(ii) has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide the financial counselling service (including engaging in the credit activity).

(5A) A person is exempted if:

(a) the person is a rural financial counselling service provider who provides credit assistance as part of the provision of a rural financial counselling service to a consumer; and

(b) no benefit (including any indirect remuneration) is payable to, or for the benefit of, the rural counselling service provider, its representatives or its associates by any person in relation to any action by or on behalf of the consumer arising from the rural financial counselling service (including the credit assistance); and

(c) no fees or charges (however described) are payable by or on behalf of the consumer in relation to the rural financial counselling service other than any fees or charges payable on behalf of the client by the Commonwealth, a State or a Territory; and

(d) the rural financial counselling service provider:

(i) does not provide any other kind of credit assistance; and

(ii) takes all reasonable steps to ensure that none of its representatives provides any other kind of credit assistance; and

(e) the rural financial counselling service provider takes all reasonable steps to ensure that each person who provides credit assistance on its behalf:

(i) is a member of, or is eligible to be a member of, a financial counselling association; and

(ii) has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide the rural financial counselling service (including the credit assistance).