15AApplication of this Division

15A Application of this Division This Division (other than subitem 16(1)) applies during the period that: 16 General conduct obligations of registered persons Obligation to be a member of the AFCA scheme (1) During the period that: (a) starts at the same time as the start of the period referred to in subitem 11(2); and a registered person must be a member of the AFCA scheme. Other general conduct obligations of registered persons (3) A registered person must: (a) do all things necessary to ensure that the credit activities authorised by the registration are engaged in efficiently, honestly and fairly; and (b) comply with the conditions on the registration; and (c) comply with the credit legislation; and (d) take reasonable steps to ensure that its representatives comply with the credit legislation; and (e) take reasonable steps to ensure that clients of the registered person are not disadvantaged by any conflict of interest that arises wholly or partly in relation to credit activities engaged in by the registered person or its representatives; and (f) comply with any other obligations that are prescribed by the regulations. 17 Obligation to provide a statement or obtain an audit report if directed by ASIC Notice to registered person to provide a statement (1) ASIC may give a registered person a written notice directing the registered person to lodge with ASIC a written statement containing specified information about the credit activities engaged in by the registered person or its representatives. (2) Notices under subitem (1): (a) may be given at any time; and (b) may be given to one or more particular registered persons, or to each registered person in one or more classes of registered persons, or to all registered persons; and (c) may require all the same information, or may contain differences as to the information they require; and (d) may require a statement containing information to be provided on a periodic basis, or each time a particular event or circumstance occurs, without ASIC having to give a further written notice. Notice to registered person to obtain an audit report (3) ASIC may also give a registered person a written notice directing the registered person to obtain an audit report, prepared by a suitably qualified person specified in the notice, on a statement, or each statement in a class of statements, under subitem (1) before the statement is given to ASIC. (4) A notice under subitem (3) is not a legislative instrument. Notice must specify day by which registered person must comply (5) A notice given under this item must specify the day by which the registered person must comply with the notice (which must be a reasonable period after the notice is given). ASIC may extend the day by giving a written notice to the registered person. Requirement to comply with notice (6) The registered person must comply with a notice given under this item within the time specified in the notice. (7) A person commits an offence if: (a) the person is subject to a requirement under subitem (6); and Strict liability offence (8) A person commits an offence if: (a) the person is subject to a requirement under subitem (6); and Criminal penalty: 10 penalty units. (9) Subitem (8) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code. 18 Obligation to give ASIC information required by the regulations Regulations may require registered person to give information (1) The regulations may require a registered person, or each registered person in a class of registered persons, to give ASIC specified information about the credit activities engaged in by the registered person or its representatives. Requirement to comply with regulations (2) If regulations under subitem (1) require a registered person to give ASIC information, the registered person must give ASIC that information. (3) A person commits an offence if: (a) the person is subject to a requirement to give ASIC information under subitem (2); and Strict liability offence (4) A person commits an offence if: (a) the person is subject to a requirement to give ASIC information under subitem (2); and Criminal penalty: 10 penalty units. (5) Subitem (4) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code. 19 Obligation to provide ASIC with assistance if reasonably requested Requirement to provide assistance (1) If ASIC, or a person authorised by ASIC, reasonably requests assistance from a registered person in relation to whether the registered person and its representatives are complying with the credit legislation, the registered person must give ASIC or the authorised person the requested assistance. (2) If the request is in writing, it is not a legislative instrument. (3) A person commits an offence if: (a) the person is subject to a requirement to give ASIC or an authorised person assistance under subitem (1); and Assistance may include showing ASIC credit books etc. (4) The assistance referred to in subitem (1) may include showing ASIC the person’s credit books or giving ASIC other information. Division 4—When registrations can be suspended, cancelled or varied 20 Cancellation because of grant or refusal of licence If: (a) a person is registered; and (b) the person applies for a licence under section 36 of the National Credit Act; and (c) ASIC grants, or refuses to grant, the person the licence; then the person’s registration is cancelled. Note: See subitem 29(2) for when the cancellation comes into force. 21 Cancellation of all registrations on transition end day The registration of every registered person is cancelled at the end of the transition end day. 22 Suspension or cancellation for failure to apply for a licence when directed by ASIC (1) ASIC may give a written notice to a registered person, directing the person to apply for a licence by a day specified in the notice (which must be at least 28 days after the day the notice is given). ASIC may extend the day by giving a written notice to the person. (2) If the person does not apply for the licence in accordance with section 36 of the National Credit Act by the day specified in the notice, ASIC may suspend or cancel the person’s registration. (3) A notice given under subitem (1) is not a legislative instrument. 23 Suspension or cancellation without hearing (1) ASIC may suspend or cancel a registered person’s registration if: (a) the registered person lodges with ASIC an application for the suspension or cancellation; or (b) the registered person does not engage, or ceases to engage, in credit activities; or (c) a banning order or disqualification order under Part 2‑4 of the National Credit Act is in force against the registered person; or (d) a banning order or disqualification order under Division 8 of Part 7.6 of the Corporations Act 2001 is in force against the registered person; or (e) the registered person is banned from engaging in a credit activity under a law of a State or Territory; or (f) an Australian financial services licence of the registered person is suspended, or has been cancelled within the last 7 years, under: (i) paragraph 915B(1)(d) or subparagraph 915B(4)(b)(iii) of the Corporations Act 2001 (which deals with suspension or cancellation because of mental or physical incapacity); or (ii) section 915C of the Corporations Act 2001 (which deals with suspension or cancellation after offering a hearing); or (g) if the registered person is not the trustees of a trust—the registered person is insolvent; or (h) the registered person is a single natural person and: (i) is disqualified from managing corporations under Part 2D.6 of the Corporations Act 2001; or (ii) is convicted of serious fraud; or (iii) is incapable of managing his or her affairs because of physical or mental incapacity; or (iv) a prescribed State or Territory order is in force against the registered person; or (i) the registered person is not a single natural person and a prescribed State or Territory order is in force against any of the following persons: (i) if the registered person is a body corporate—a director or secretary of the body corporate who performs duties in relation to credit activities; (ii) if the registered person is a partnership or the trustees of a trust—a partner or trustee who performs duties in relation to credit activities. (1A) For the purposes of paragraph (1)(e), a reference to a credit activity in the definitions of banned from engaging in a credit activity under a law of a State or Territory and State or Territory credit licence in subsection 5(1) of the National Credit Act (as those definitions apply for the purposes of this Act because of subsection 4(2) of this Act) includes a reference to an activity that would be a credit activity if the new Credit Code had applied from the day section 3 of the National Credit Act commences. (2) An application for suspension or cancellation of a registration must be in the approved form.