Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (135 of 2020)

Schedule 4   Caps on commissions

Australian Securities and Investments Commission Act 2001

9   After section 12GF

Insert:

12GFA Recovering commissions that exceed a cap under section 12DMC

(1) If:

(a) a person provides a commission to another person in connection with the supply (by any person to any person) of a financial service; and

(b) the financial service is the provision of an add-on risk product to another person (the consumer ) in connection with:

(i) the sale or long-term lease of a motor vehicle to the consumer; or

(ii) the provision of credit connected with the sale or long-term lease of a motor vehicle to the consumer; and

(c) providing the commission contravenes section 12DMC;

the consumer is entitled to recover the value of the commission from the person.

Note: For the value of the commission, see subsections 12DMC(5) to (7).

(2) If:

(a) a person (the motor vehicle dealer ) receives a commission in connection with the supply (by any person to any person) of a financial service; and

(b) the financial service is the provision of an add-on risk product to the motor vehicle dealer in connection with the giving of a warranty by the motor vehicle dealer in connection with the sale or long-term lease of a motor vehicle to another person (the consumer ); and

(c) providing the commission contravenes section 12DMC;

the consumer is entitled to recover the value of the commission from the motor vehicle dealer.

Note: For the value of the commission, see subsections 12DMC(5) to (7).

(3) This section does not affect the other person's right to recover loss or damage under section 12GF.