{"id":"F2021L00271","name":"National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2021","slug":"national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440786,"registerId":"F2021L00271-fast-fetch-1775956296913","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2021","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nNational Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2021\n\nI, General the Honourable David Hurley AC DSC (Retd), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.\n\nDated 18 March 2021\n\nDavid Hurley\n\nGovernor‑General\n\nBy His Excellency’s Command\n\nJosh Frydenberg\n\nTreasurer\n\n \n\n \n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\nPart 2—Application provisions for Schedule 10 to the Act\n\n5 Definitions\n\n6 Application of ban on conflicted remuneration\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2021.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered. 23 March 2021\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009.\n\n4  Definitions\n\nNote: National Credit Act is defined in the Act.\n\n  In this instrument:\n\nAct means the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009.\n\nPart 2—Application provisions for Schedule 10 to the Act\n\n \n\n5  Definitions\n\n  In this Part:\n\namending Act means the Financial Sector Reform (Hayne Royal Commission Response—Protecting Consumers (2019 Measures)) Act 2020.\n\ncommencement time means the time when this Part commences.\n\n6  Application of ban on conflicted remuneration\n\n (1) This section is made for the purposes of subitem 3(2) of Schedule 10 to the Act.\n\n (2) Division 4 of Part 3‑5A of the National Credit Act, as inserted by item 5 of Schedule 3 to the amending Act, applies to a benefit given to a licensee, or a representative of a licensee, at or after the commencement time under an arrangement entered into before, at or after the commencement time.\n\n (3) Subsection (2) does not apply to a benefit in relation to which a class of persons is exempt under the ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"Regulation 6(2) extends the temporal reach of the National Credit Act’s conflicted‑remuneration ban by applying Division 4 of Part 3‑5A to benefits given at or after commencement even where the arrangement was entered into before commencement. Regulation 6(3) preserves the ASIC Instrument exemption. The instrument therefore changes the practical scope of application over time (see reg 6(2)–(3))."},"complexity_factors":["Cross‑references to other laws and instruments: the instrument operates by applying Division 4 of Part 3‑5A of the National Credit Act as inserted by the Financial Sector Reform (Hayne Royal Commission Response—Protecting Consumers (2019 Measures)) Act 2020 (see reg 6(2) and reg 5).","Temporal application/retroactivity: regulation 6(2) makes the ban apply to benefits given at or after commencement under arrangements entered into before, at or after commencement, which requires checking past and present contracts.","Exemption linkage: regulation 6(3) preserves a categorical exemption under the ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487, so compliance requires identifying whether a benefit falls within that exempt class.","Dependence on external definitions and schedules: key terms and scope depend on definitions and provisions located in the National Credit Act and Schedule 10 to the Act (see reg 4 note and reg 6(1)), increasing interpretive complexity.","Commencement mechanics: the staged/explicit commencement provision (reg 2) and the instrument’s purpose tied to a specific subitem (reg 6(1)) mean legal effect depends on timing and interaction with the amending Act."],"plain_english_summary":"This regulation brings the National Credit Act’s ban on “conflicted remuneration” to benefits given to credit licensees and their representatives, and makes that ban apply to benefits paid at or after commencement even if the underlying arrangement was entered into before commencement. It preserves an existing class exemption set out in the ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487. It affects credit licensees, their representatives (including mortgage brokers) and parties who pay commissions or other benefits."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: providing transitional application rules for the conflicted remuneration ban introduced by the Hayne Royal Commission response legislation. It does not expand beyond this specific technical function."},"complexity_factors":["Very short instrument (only 6 sections across 2 Parts)","Heavy reliance on external definitions — 'National Credit Act' and 'Act' are defined by reference to other legislation","Nested cross-references: Section 6(2) references subitem 3(2) of Schedule 10 to the Act, which itself references Division 4 of Part 3-5A of the National Credit Act, inserted by item 5 of Schedule 3 to the amending Act","Single conditional exemption in section 6(3) referencing an ASIC legislative instrument by specific year/number","No interpretation section with extensive defined terms — only 2 definitions in Part 2"],"plain_english_summary":"These rules close a loophole in the ban on “conflicted remuneration” in consumer credit by making the prohibition apply to all payment arrangements — regardless of whether they were entered into before, on, or after the new rules — so brokers and credit licensees can’t rely on old contracts to justify biased commissions. It affects mortgage brokers, credit providers, consumers and ASIC; limited temporary ASIC relief for certain groups remains."}},"importantCases":[],"_links":{"self":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021","history":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021/history","analysis":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021/analysis","conflicts":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021/conflicts","importantCases":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021/important-cases","documents":"/api/acts/national-consumer-credit-protection-transitional-and-consequential-provisions-regulations-2021/documents"}}