Commonwealth Consolidated Regulations Commonwealth Consolidated RegulationsApplication of debt management service reforms--general
(1) The debt management service amendments apply (subject to this regulation) in relation to a debt management service provided on or after 1 July 2021, regardless of whether the arrangement under which the service is provided is entered into before, on or after 1 July 2021.
Application of debt management service reforms--application for and grant of licences etc.
(2) Despite subregulation (1), the debt management service amendments apply on and after the commencement of Schedule 1 to the National Consumer Credit Protection Amendment (Debt Management Services) Regulations 2021 for the purposes of:
(a) Divisions 2, 3, 4 and 6 of Part 2 - 2 of the Act (which are about licensing of persons who engage in credit activities); and
(b) Part 2 - 3 of the Act (which is about credit representatives).
(3) Subregulation (4) applies if:
(a) before 1 July 2021, a person (the applicant ) lodges an application in the approved form for:
(i) a licence authorising the applicant to provide a debt management service; or
(ii) ASIC to vary the conditions on the applicant's licence by authorising the applicant to provide a debt management service; and
(b) at the start of 1 July 2021, the application has not been withdrawn by the applicant, or dealt with by ASIC; and
(c) the applicant is a member of the AFCA scheme at all times in the period (the transition period ) that:
(i) starts at the start of 1 July 2021; and
(ii) ends when the application is withdrawn by the applicant, or dealt with by ASIC, whichever happens first.
Note: ASIC may deal with the application by granting, or refusing to grant, the licence (see section 37 of the Act), by granting, or refusing to grant, the variation (see sections 45 and 46A of the Act), or by refusing to receive the application (see section 218 of the Act).
(4) The following persons are treated as not providing a debt management service during the transition period:
(i) is an employee or a director of the applicant or of a related body corporate of the applicant; and
(ii) is acting on behalf of the applicant and within the authority of the applicant;
(i) the applicant intends to authorise under section 64 of the Act to engage in debt management services on behalf of the applicant, if the applicant becomes licensed to provide those services; and
(ii) could validly be so authorised, having regard to subsections 64(4) and (5) of the Act; and
(iii) is authorised in writing by the applicant to act on behalf of the applicant and is acting within that authority;
(d) if there is a person covered by paragraph (c) (a prospective credit representative ) in relation to the applicant--another person who:
(i) the prospective credit representative intends to authorise under section 65 of the Act to engage in debt management services on behalf of the applicant, if the applicant becomes licensed to provide those services and the prospective credit representative becomes an actual credit representative of the applicant; and
(ii) could validly be so authorised, having regard to subsections 65(5) and (6) of the Act; and
(iii) with the written consent of the applicant, is authorised in writing by the prospective credit representative to act on behalf of the applicant and is acting within that authority.
"debt management service amendments" means the amendments made by items
1, 2, 5, 6 and 7 of Schedule 1 to the National Consumer Credit
Protection Amendment (Debt Management Services) Regulations 2021 .