National Consumer Credit Protection Act 2009

CHAPTER 2 - LICENSING OF PERSONS WHO ENGAGE IN CREDIT ACTIVITIES  

PART 2-2 - AUSTRALIAN CREDIT LICENCES  

Division 5 - Obligations of licensees  

Subdivision A - General obligations  

SECTION 48   REQUIREMENTS FOR COMPENSATION ARRANGEMENTS  
Requirement to have adequate compensation arrangements

48(1)    
A licensee must have adequate arrangements for compensating persons for loss or damage suffered because of a contravention of this Act by the licensee or its representatives.

When arrangements are adequate

48(2)    
For the purposes of subsection (1), arrangements are adequate if, and only if, they:

(a) satisfy any requirements prescribed by the regulations; or

(b) are approved in writing by ASIC.

Approval of arrangements by ASIC

48(3)   [ Matters to be consider before approval under para (2)(b)]  

Before approving arrangements under paragraph (2)(b), ASIC must have regard to:

(a) the credit activities authorised by the licence; and

(b) whether the arrangements will continue to cover persons after the licensee ceases to engage in credit activities, and the length of time for which that cover will continue; and

(c) any other matters that are prescribed by the regulations.

48(4)   [ Regulations may prescribe additional details for 3(a) and (b)]  

Without limiting paragraph (3)(c), the regulations may, in particular, prescribe additional details in relation to the matters to which ASIC must have regard under paragraphs (3)(a) and (b).