10The conditions on the registration

10 The conditions on the registration

(1) For subitem 14 (7) of Schedule 2 to the Act, the registration is subject to the conditions set out in this regulation.

(2) If:

(a) there is a change in a matter particulars of which are entered in the credit register for registered persons; and

(b) the change is not a direct consequence of an act by ASIC;

the registered person must lodge particulars of the change with ASIC, in the approved form, within 10 business days after the change occurs.

(3) If:

(a) there is a change in a matter particulars of which are entered in the credit register for credit representatives; and

(b) the change is not required to be reported in accordance with section 71 of the National Credit Act; and

(c) the change is not a direct consequence of an act by ASIC;

the registered person must ensure that particulars of the change are lodged with ASIC in the approved form within 10 business days after the change occurs.

(4) The registered person must ensure that each credit representative of the registered person that may give an authorisation to another individual is aware of the requirements in section 71 of the National Credit Act.

(5) The registered person must ensure that, before the registered person authorises an individual to engage in a credit activity on its behalf as mentioned in section 64 of the National Credit Act, reasonable inquiries are made to establish:

(a) the individual’s identity; and

(b) whether the individual has already been allocated a number by ASIC as a credit representative.

(6) The registered person must ensure that, before a body corporate that is a credit representative of the registered person authorises an individual to engage in a credit activity on behalf of the registered person as mentioned in section 65 of the National Credit Act, reasonable inquiries are made to establish:

(a) the individual’s identity; and

(b) whether the individual has already been allocated a number by ASIC as a credit representative.

(7) The registered person must ensure that, if:

(a) ASIC has allocated a number to a credit representative; and

(b) the registered person, or a body corporate that has authorised an individual to engage in a credit activity on behalf of the registered person as mentioned in section 65 of the National Credit Act, lodges a document with ASIC that refers to the credit representative;

the document refers to the number.

(8) The registered person must provide evidence of an authorisation of any of its credit representatives:

(a) on request by any person; and

(b) free of charge; and

(c) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which it received the request.

(9) The registered person must take reasonable steps to ensure that each of its credit representatives supplies evidence of its authorisation by the registered person:

(a) on request by any person; and

(b) free of charge; and

(c) as soon as practicable after receiving the request and, in any event, within 10 business days after the day on which it received the request.

(10) If the registered person becomes aware of any change in control of the registered person, the registered person must lodge with ASIC particulars of the change, in the approved form, not later than 10 business days after the change.

(11) For subregulation (10):

(a) a change in control, in relation to a registered person, includes a transaction, or a series of transactions in a period of 12 months, that results in a person having control of the registered person (either alone or together with associates of the person); and

(b) control, in relation to a registered person, means:

(i) if the registered person is a body corporate:

(A) the capacity to cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the registered person; or

(B) directly or indirectly holding more than one half of the issued share capital of the registered person (not including any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or

(ii) the capacity to control the composition of the registered person’s board or governing body; or

(iii) the capacity to determine the outcome of decisions about the registered person’s financial and operating policies.

(12) For subparagraph (11) (b) (iii), the following matters must be taken into account in determining whether a person has the capacity to determine the outcome of decisions about the registered person’s financial and operating policies:

(a) the practical influence the person can exert (rather than the rights it can enforce);

(b) any practice or pattern of behaviour affecting the registered person’s financial or operating policies is to be taken into account (whether or not it involves a breach of an agreement or a breach of trust).

(13) On the request of any person, the registered person must make available, within 10 business days, evidence of its registration for inspection by that person.