National Consumer Credit Protection Act 2009

A licensee must have adequate arrangements for compensating persons for loss or damage suffered because of a contravention of this Act by the licensee or its representatives.

For the purposes of subsection (1), arrangements are adequate if, and only if, they:

satisfy any requirements prescribed by the regulations; or

are approved in writing by ASIC.

Before approving arrangements under paragraph (2)(b), ASIC must have regard to:

the credit activities authorised by the licence; and

whether the arrangements will continue to cover persons after the licensee ceases to engage in credit activities, and the length of time for which that cover will continue; and

any other matters that are prescribed by the regulations.

Without limiting paragraph (3)(c), the regulations may, in particular, prescribe additional details in relation to the matters to which ASIC must have regard under paragraphs (3)(a) and (b).