Personal Property Securities Consultation
Discussion Paper - Regulations under the Personal Property Securities Act - August 2008
Comment is invited on the regulations that may be prescribed under the Personal Property Securities Act.
A discussion paper on the regulations that may be prescribed under the Personal Property Securities Act was released by the Australian Attorney-General, the Hon Robert McClelland MP, on 29 August 2008 for public comment. The paper can be found by visiting the PPS Downloads page.
The discussion paper details the proposed content and policy rationale for the regulations that it is proposed, at this stage, would be made under the Act.
The Australian Government encourages the business community, members of the public with an interest in PPS law reform and government agencies to review this discussion paper.
Comments/submissions on this discussion paper are invited by 17 October 2008 and may be provided by email to pps@ag.gov.au, mailed or faxed to:
Personal Property Securities Branch
Australian Attorney-General’s Department
Robert Garran Offices
3-5 National Circuit
BARTON ACT 2600
Facsimile: (02) 6250 5978
Summary of Outcomes of Consultations on the Personal Property Securities Bill 2008 – Consultation Draft
Since the release of the consultation draft PPS Bill in May 2008, the Department has engaged in extensive public consultations with a range of industry representatives and professionals such as law firms, banks, credit managers and insolvency practitioners. The consultations have been supported by an education campaign aimed at the broader public involving the conduct of seminars and publication of journal articles in key periodicals.
The consultations have generally demonstrated strong support for the Bill. At the same time, industry has highlighted a range of issues as warranting closer attention. Specifically, key input that will be reflected in the final Bill will cover:
- the approach taken to investment products in a way that supports Australia as an emerging global financial centre with innovative financial products
- choice of law rules that recognise and encourage international trade and transactions
- a more streamlined approach to enforcement that better recognises the interests of first in line priority holders
- maintenance of employee preferences in insolvency
- clarifying the rules related to the acquisition of knowledge, extinguishment of prior security interests and requirements for obtaining priority, and
- issues that impact upon the operation of State and Territory governments such as water rights, licences and land titles registers.
The consultations have highlighted industry concern about the IT resources required to implement the changes, and to ensure that there is sufficient lead time to allow industry to interface with the new PPS Register. The Department’s response to this issue is to commit to working with stakeholders to assist with their preparations for transition and integration into the new PPS Register some time before it commences operation in May 2010.
A continuing dialogue between government and industry will help to ensure a seamless transition and promote new and effective industry practices in response to the new scheme.
The Department will continue its engagement with stakeholders in the lead-up to the start of the new national regime.
All enquiries should be directed to pps@ag.gov.au.
Recent developments in personal property securities reform
On 16 May 2008 the Australian Attorney-General, the Hon Robert McClelland MP, released a consultation draft Personal Property Securities Bill (the Bill) for public comment. The release of the Bill represented a significant milestone in PPS reform. The Attorney-General’s Department has been engaged in extensive consultations on the Bill with key stakeholders in the banking, finance and legal sectors. The feedback from these consultations is being used to refine the Bill. In the week beginning 26 May 2008 public seminars on the Bill were held in Sydney, Melbourne, Perth and Brisbane. A public seminar was also held in Adelaide on 3 July 2008. These seminars were all very well attended and received.
Submissions on the Bill were invited by 15 August 2008. As a consequence of the public consultation it is likely that there will be some refinement to various aspects of the Bill. This discussion paper follows the structure of the Bill released on 16 May 2008. Where a change to the Bill is proposed and it relates to a matter addressed in this discussion paper, the discussion paper identifies that a change to the Bill may be made. The development of the PPS Register is also progressing well and on schedule for a commencement date in May 2010. On 16 May 2008 the Attorney-General’s Department released a request for tender for systems integrator services to design and develop the new national register. It is anticipated that a request for tender for a national PPS contact centre will be released in the coming months.
Next Steps
Now
Draft Bill
The final Bill will now be amended to reflect the key input from the consultation.
Draft Regulations
The Draft of the Regulations proposed for the Personal Property Securities Bill 2008 will be opened for public comment on 29 August 2008. A series of seminars on the proposed regulations will be held. Details will be announced when finalised.
Personal Property Securities Register
Evaluation of responses to RFT for PPSR Systems Integrator
Work on other PPS procurements in progress
Engagement continues with existing State and Territory Registers to be taken up by the national PPS Register
September 2008
PPS Register
Procurement process for a PPS Register Contact Centre to commence with release of tender.
Engagement continues with existing State and Territory Registers likely to be taken up by the national PPS Register
October 2008
Proposed Regulations
Period of comment likely to close on 17 October 2008.
Intergovernmental Agreement
A draft proposal for the framework for the national system of Personal Property securities and the framework for ongoing management of national system is being developed for the consideration of the Council of Australian Governments at its meeting on 2 October 2008.
Personal Property Securities Register
PPS Register Contact Centre RFT closes.
The outcome of the Systems Integrator Tender process is likely to be announced on 31 October 2008.
Engagement continues with existing State and Territory Registers likely to be taken up by the national PPS Register.
November 2008
Personal Property Securities Register
Systems Integrator for PPS Register takes up role.
December 2008
Personal Property Securities Register
Systems Integrator continues work.
Assessment of responses to Contact Centre RFT.