The Personal Property Securities Bill was passed by the Senate
on 26 November 2009 and the new Personal Property Securities Act
(PPS Act) comes into effect May 2011.
The PPS Act will impact on the business of financiers, insurers,
lessors and suppliers of goods, as well as insolvency
The Act will replace about 70 pieces of legislation around the
country and will set up a Federal regime for the registration of
securities over personal property other than land and certain
statutory licences. Securities such as Company Charges and Chattel
Mortgages that were previously registered with ASIC and other
various state and territory agencies, will now be registered in the
PPS register which will be administered by the Insolvency and
Trustee Service Australia (ITSA).
Other arrangements such as conditional sale agreements
(including ones containing retention of title provisions) and
certain leases will now also be registerable interests.
Some Registers will cease to exist
Registers such as the Register of Encumbered Vehicles (REVS)
register in NSW and the equivalent Registers in other states and
territories will cease to exist and registration of interests in
motor vehicles and boats will now be via the PPS Register, an
online register currently being created.
Hunt & Hunt has been doing presentations on the new PPS
regime with the Federal Attorney General's department around
the country in the past month, and is involved in key business
consultation groups staying at the forefront of the changes.
What businesses need to do now
Although it appears that May 2011 is quite far away, the effect
of the PPS Act will require some very significant changes to the
way businesses operate and it is important to be ready and to
understand how it may affect your business. This will require a
full review of business security registers and other arrangements,
which will now be covered by the PPS Act.
Hunt & Hunt will be conducting a number of presentations
throughout 2010 in our offices across Australia and will be
providing further updates throughout the year on the new
regulations and the operation of the PPS Register.
In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
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