Financial Sector Reform (Hayne Royal Commission Response - Protecting Consumers (2019 Measures)) Act 2020 (2 of 2020)

Schedule 3   Mortgage brokers

Part 1   Main amendments

National Consumer Credit Protection Act 2009

4   After section 15

Insert:

15A Meaning of associate

(1) If a person is associated with a credit provider for the purposes of the National Credit Code:

(a) the person is an associate of the credit provider; and

(b) the credit provider is an associate of the person.

(2) In any other case, a person is an associate of another person in the circumstances prescribed by the regulations.

15B Meaning of mortgage broker

(1) A licensee is a mortgage broker if:

(a) the licensee carries on a business of providing credit assistance in relation to credit contracts secured by mortgages over residential property; and

(b) the licensee does not perform the obligations, or exercise the rights, of a credit provider in relation to the majority of those credit contracts; and

(c) in carrying on the business, the licensee provides credit assistance in relation to credit contracts offered by more than one credit provider.

(2) A credit representative of a licensee is a mortgage broker if:

(a) the credit representative carries on a business of providing credit assistance in relation to credit contracts secured by mortgages over residential property; and

(b) neither the credit representative nor the licensee performs the obligations, or exercises the rights, of a credit provider in relation to the majority of those credit contracts; and

(c) in carrying on the business, the credit representative provides credit assistance in relation to credit contracts offered by more than one credit provider.

15C Meaning of mortgage intermediary

(1) A licensee is a mortgage intermediary if:

(a) the licensee carries on a business of acting as an intermediary in relation to credit contracts secured by mortgages over residential property; and

(b) the licensee does not perform the obligations, or exercise the rights, of a credit provider in relation to the majority of those credit contracts; and

(c) in carrying on the business, the licensee acts as an intermediary in relation to credit contracts offered by more than one credit provider.

(2) A credit representative of a licensee is a mortgage intermediary if:

(a) the credit representative carries on a business of acting as an intermediary in relation to credit contracts secured by mortgages over residential property; and

(b) neither the credit representative nor the licensee performs the obligations, or exercises the rights, of a credit provider in relation to the majority of those credit contracts; and

(c) in carrying on the business, the credit representative acts as an intermediary in relation to credit contracts offered by more than one credit provider.