20Persons exempt from requiring a licence—general

#### 20 Persons exempt from requiring a licence—general (1) For the purposes of paragraph 110(1)(a) of the Act, this regulation exempts certain persons engaging in a credit activity from: (a) section 29 of the Act; and (b) definitions in the Act, as they apply to references in the provisions mentioned in paragraph (a); and (c) instruments made for the purposes of any of the provisions mentioned in paragraphs (a) and (b). > Note: Section 29 of the Act provides that a person must not engage in a credit activity if the person does not hold a licence authorising the person to engage in the credit activity. (2) The person is exempted only to the extent that the person is engaging in the specified credit activity. > Note: If the person also engages in a credit activity that is not the subject of an exemption under the Act, the person is not exempted in relation to that credit activity. (3) A person is exempted if: (a) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a trustee within the meaning of the Bankruptcy Act 1966; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a trustee; or (b) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a controller within the meaning of the Corporations Act 2001, provisional liquidator, or liquidator (whether appointed by a court or otherwise); or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a controller, provisional liquidator or liquidator; or (c) the person engages in a credit activity while performing functions, or exercising powers, as a person appointed by a court to engage in a credit activity; or (d) the person engages in a credit activity while performing functions, or exercising powers, as the Public Trustee acting under a law of a State or Territory; or (e) the person engages in a credit activity while: (i) performing functions, or exercising powers, as an administrator within the meaning of the Corporations Act 2001; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as an administrator; or (ea) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a restructuring practitioner for a company or a company’s restructuring plan; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a restructuring practitioner for a company or a company’s restructuring plan; or (f) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a controlling trustee within the meaning of section 187 of the Bankruptcy Act 1966; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a controlling trustee; or (fa) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a trustee of a personal insolvency agreement under Part X of the Bankruptcy Act 1966; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a trustee of a personal insolvency agreement; or (g) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a trustee or person administering a compromise or arrangement between a body corporate and another person or person; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a trustee or person of that kind; or (h) the person engages in a credit activity while performing functions, or exercising powers, as a personal representative of a deceased person other than a deceased licensee; or (i) subject to subregulation (4), the person engages in a credit activity while performing functions, or exercising powers, as a personal representative of a deceased licensee; or (j) the person engages in a credit activity while performing functions, or exercising powers, as a registered debt agreement administrator preparing and administering a debt agreement under Part IX of the Bankruptcy Act 1966; or (k) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a registered trustee under Part X of the Bankruptcy Act 1966 in the ordinary course of activities as a registered trustee that is reasonably regarded as a necessary part of those activities; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a registered trustee; or (l) the person engages in a credit activity while: (i) performing functions, or exercising powers, as a registered liquidator within the meaning of the Corporations Act 2001 in the ordinary course of activities as a registered liquidator that is reasonably regarded as a necessary part of those activities; or (ii) performing functions, or exercising powers, incidental to the person’s appointment as a registered liquidator. (4) Paragraph (3)(i) only applies until the first of the following events occurs: (a) the end of 6 months after the death of the licensee; (b) the removal or discharge of the personal representative; (c) the final distribution of the licensee’s estate. (5) A person is exempted if: (a) the person (the financial counselling agency) engages in a credit activity as part of the provision of a financial counselling service to a client; and (b) no benefit (including any indirect remuneration) is payable to, or for the benefit of, the financial counselling agency, its representatives or its associates by any person in relation to any action by or on behalf of the client arising from the financial counselling service (including the engaging in of the credit activity); and (c) no fees or charges (however described) are payable by or on behalf of the client in relation to the financial counselling service other than any fees or charges payable on behalf of the client by the Commonwealth, a State or a Territory; and (d) the financial counselling agency: (i) does not engage in any other kind of credit activity; and (ii) takes all reasonable steps to ensure that none of its representatives engages in any other kind of credit activity; and (e) the financial counselling agency takes all reasonable steps to ensure that each person who engages in credit activities on its behalf: (i) is a member of, or is eligible to be a member of, a financial counselling association; and (ii) has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide the financial counselling service (including engaging in the credit activity). (5A) A person is exempted if: (a) the person is a rural financial counselling service provider who provides credit assistance as part of the provision of a rural financial counselling service to a consumer; and (b) no benefit (including any indirect remuneration) is payable to, or for the benefit of, the rural counselling service provider, its representatives or its associates by any person in relation to any action by or on behalf of the consumer arising from the rural financial counselling service (including the credit assistance); and (c) no fees or charges (however described) are payable by or on behalf of the consumer in relation to the rural financial counselling service other than any fees or charges payable on behalf of the client by the Commonwealth, a State or a Territory; and (d) the rural financial counselling service provider: (i) does not provide any other kind of credit assistance; and (ii) takes all reasonable steps to ensure that none of its representatives provides any other kind of credit assistance; and (e) the rural financial counselling service provider takes all reasonable steps to ensure that each person who provides credit assistance on its behalf: (i) is a member of, or is eligible to be a member of, a financial counselling association; and (ii) has undertaken appropriate training to ensure that they have adequate skills and knowledge to satisfactorily provide the rural financial counselling service (including the credit assistance). (6) A person is exempted if: (a) the person: (i) is a related body corporate of a licensee; and (ii) is engaging in credit activities only on behalf of the licensee; and (iii) is engaging in credit activities only because its employees and directors are engaging in credit activities on behalf of the licensee; and (b) the credit activities in which the person engages are not those mentioned in: (i) paragraph (a) or (b) of item 1 of the table in subsection 6(1) of the Act; or (ii) paragraph (a) or (b) of item 3 of the table in subsection 6(1) of the Act. (7) A person is exempted if the person is a public body or authority, or a local government body or authority, constituted under an Act of the Commonwealth or a State or Territory. (8) Subject to subregulation (9), if a person is authorised to engage in particular credit activities by: (a) an Act of the Commonwealth or a State or Territory (other than the Act, the Transitional Act or an Act mentioned in subregulation (10)); or (b) a licence or registration issued or granted under an Act of the Commonwealth or a State or Territory (other than the Act, the Transitional Act or an Act mentioned in subregulation (10)); the person is exempted to the extent that the person is engaging in the credit activities in which the person is authorised to engage under that Act, licence or registration. (10) For paragraphs (8)(a) and (b), the Acts are: (a) the Finance Brokers Control Act 1975 (WA); and (b) the Credit (Administration) Act 1984 (WA); and (c) the Consumer Credit (Administration) Act 1996 (ACT). (11) A person is exempted if: (a) the person is an organisation that provides services and makes benefits available to members of: (i) the organisation; or (ii) a program or facility operated or conducted by or within the organisation; and (b) an incidental benefit of membership of the organisation, program or facility is that members are eligible: (i) to apply for a particular credit contract or consumer lease offered by a licensee, a registered person or an exempt special purpose funding entity; or (ii) to obtain services or benefits under a particular credit contract or consumer lease offered by a licensee, a registered person or an exempt special purpose funding entity; and (d) the organisation provides credit services (within the meaning given by section 7 of the Act) in relation to the particular credit contract or consumer lease to members or persons likely to become members under a contract or agreement with the licensee, registered person or exempt special purpose funding entity; and (e) it would not ordinarily be the case that: (i) the credit to be provided under the credit contract is provided predominantly for the payment for services, goods or benefits provided by the organisation or an associate of the organisation; or (ii) the goods to be hired under the consumer lease are supplied by the organisation or an associate of the organisation. (12) A person is exempted if: (a) either: (i) the person: (A) is a charitable body (within the same meaning as in ASIC Class Order \[CO 02/184\]); and (B) is engaging in credit activities by providing a credit service in relation to credit contracts or consumer leases provided by a licensed or registered credit provider or lessor or an exempt special purpose funding entity that is a credit provider or lessor; or (ii) the person: (A) is not a charitable body (within the same meaning as in ASIC Class Order \[CO 02/184\]); and (B) is engaging in credit activities by providing a credit service in relation to credit contracts or consumer leases provided by an ADI; and (b) the credit contracts or consumer leases are offered as part of a program designed for low income consumers who are entitled: (i) to hold a Health Care Card or Pension Concession Card; or (ii) to receive Family Tax Benefit Part A; and (c) the only benefit (including as indirect remuneration) payable to, or on behalf of, the person by any other person in relation to any action by, or on behalf of, the client arising from providing the credit service is payments made by a third party that has no existing relationship with the client. (13) A person is exempted if: (a) the person engages in credit activities mentioned in: (i) paragraph (c) of item 1 of the table in subsection 6(1) of the Act; or (ii) paragraph (c) of item 3 of the table in subsection 6(1) of the Act; or (iii) paragraph (b) of item 4 of the table in subsection 6(1) of the Act; or (iv) paragraph (b) of item 5 of the table in subsection 6(1) of the Act; and (b) the person engages in the credit activities while performing the statutory obligations of a credit provider, lessor, mortgagee or beneficiary of a guarantee under: (i) the Privacy Act 1988; or (ii) the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006. Sunset of subregulations (5) and (5A) (14) Subregulations (5) and (5A) are repealed on 1 January 2033.