28VBMonetary benefit given in certain circumstances not conflicted remuneration

#### 28VB Monetary benefit given in certain circumstances not conflicted remuneration (1) This regulation is made for the purposes of paragraph 158NA(b) of the Act. Benefit given by a consumer (2) A monetary benefit given to a licensee, or a representative of a licensee, is not conflicted remuneration if the benefit is given by a consumer in relation to a credit service provided to the consumer by the licensee or representative. Other mortgage broker and mortgage intermediary remuneration (3) A monetary benefit given (whether directly or indirectly) to a licensee, or a representative of a licensee, is not conflicted remuneration if: (a) the benefit relates to a credit service provided by the licensee or representative to a consumer who is a debtor under a credit contract; and (b) the benefit is not a volume‑based benefit; and (c) the benefit is not a campaign‑based benefit; and (d) for a benefit to which the drawdown cap applies under subregulation 28VC(1)—the benefit is one of the following: (i) an amount given on the basis of the credit service provided to the consumer under the credit contract, without reference to a particular amount of credit that may be or has been provided to the consumer; (ii) a benefit that is calculated as a percentage of an amount that is no more than the maximum drawdown net of offset for the credit contract for the year to which the drawdown cap applies in relation to the credit contract (see regulation 28VD); (iii) a benefit that is a combination of either or both of subparagraphs (i) and (ii); and (e) the clawback requirements are satisfied in relation to the benefit (if applicable). (4) A benefit is taken to be a benefit described in subparagraph (3)(d)(ii) if: (a) the benefit is a monetary benefit given (whether directly or indirectly) to a licensee, or a representative of a licensee; and (b) the benefit relates to a credit service provided by the licensee or representative to a consumer who is a debtor under a credit contract; and (c) the benefit is calculated as a percentage of an amount that is greater than the maximum drawdown net of offset for the credit contract for the year to which the drawdown cap applies in relation to the credit contract; and (d) the use of that greater amount is a result of a mistaken but reasonable estimation of what the maximum drawdown net of offset for the credit contract would be for the year to which the drawdown cap applies in relation to the credit contract; and (e) the difference between the following amounts is refunded by the licensee or representative to the person who paid the benefit within 3 months after the end of the year to which the drawdown cap applies in relation to the credit contract: (i) the benefit paid to the licensee or representative; (ii) the benefit that would have been paid to the licensee or representative if the correct maximum drawdown net of offset for the credit contract for the year to which the drawdown cap applies in relation to the credit contract had been used.