The report is the product of a review process which started with
a call for submissions by the Attorney General in April 2014 and
included extensive consultation with a wide range of stakeholders.
According to the author of the report who has also led the review,
Mr Bruce Whittaker, the review received a total of 171 submissions
and responses which played a key role in formulating his
What does the final report cover?
The final report gives a comprehensive analysis of the PPSA and
the operation of PPS register, in each case explaining the relevant
issue or concern, discussing the feedback received as part of the
consultation process and then making recommendations on how the
issue can be addressed.
In most cases the recommendations include suggested changes to
the PPSA or the functionality of the PPS register, whereas in other
cases the author suggests other steps which the Government can
follow to ultimately address the issue or concern.
By way of example, the report recommends that the concept
"chattel paper" be deleted from the
PPSA, whereas in the case of "fixtures", the
report recommends that the Government explore with the States and
Territories whether a regime can be developed that would allow
fixtures to be brought within the PPSA.
The report is an excellent resource for anyone who wishes to
understand the background and philosophy that underpins the PPSA
and some of the difficulties that parties involved in secured
financing transactions and their advisers face.
The report and the author's recommendations are currently
under consideration by the Government. Should the Government accept
some or all of the recommendations, we can expect that the process
of drafting a Bill which amends the PPSA will commence in the near
Given the complexity of personal property securities and the
importance of finance to our economy, the author has urged the
Government to diverge from its usual legislative drafting
procedures in implementing the recommendations. In particular, the
author has suggested a collaborative approach in drafting the
amending Bill which should include participation by the Office of
Parliamentary Counsel, the Attorney-General's Department and
the private sector. Clayton Utz strongly agrees with this
suggestion and we hope to play a key role in this process.
The report was tabled before the Commonwealth Parliament on 18
March 2015 and is currently scheduled to be discussed on Tuesday 24
March, after which we may have further guidance on the legislative
timeframe and process. We will continue to monitor any developments
flowing from the review process.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
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