PPSR Newsletter - November 2024

Our Chief Executive Tim Beresford hosted another successful PPSR Stakeholder Forum on Thursday 26 September with attendees from the business, banking, finance, regulatory and government sectors.

The Forum discussed key trends within the PPS system, preparing for implementation of proposed legislative reform, and harm reduction, covering areas of PPSR misuse, vulnerability and education.

Attendees received valuable insights on topics such as:

• categorising and addressing misuse in a strategic and targeted manner
• combatting harmful behaviour such as registering personal identifiers
• vulnerable cohorts in the system (both small business and individuals) and removing barriers for them
• how AFSA might better support victims of family domestic violence
• opportunities to get more from the PPSR including proposed improvements
• transparency on timeliness of PPSR discharges.

The Forum concluded with Tim Beresford thanking participants and noting the ‘strong spirit of cooperation and collaboration between government and industry’ (collective stewardship) as we all work to ensure a strong credit system for the Australian community.

To ensure confidence in the Personal Property Securities system and a strong credit system for Australia, AFSA continues to broaden our regulatory toolkit to respond to new and emerging harms. We do this by combining our regulatory expertise with market surveillance and data analytics.

While there is limited evidence of widespread misuse of the PPSR in 2023–2024, in a small number of instances AFSA has detected and responded to misuse.

Our Regulatory Action Statement 2024-25 has been released and outlines our focus in addressing conduct in the areas of significant harm over the next 12 months, using our regulatory toolkit of education, compliance, investigation and enforcement.

In relation to the PPSR, we will be focusing on the following areas:

• People disclosing Personal Identifiable Information via PPSR registrations.
• Cases where individuals have sought to use the PPSR as a tool in their coercive control over current or former partners.
• Failure by financial institutions to end registrations on the Personal Property Securities Register in a timely manner.

Under our Regulatory Action Statement 2024-25, we will be targeting those who engage in or promote this conduct to others.

We encourage you to reach out via info@afsa.gov.au if this is something you’re seeing in your systems.

Did you know there are PPSR timing rules (time limits) which apply when ending a registration?

All users of the PPSR are actively encouraged to discharge registrations as soon as practicable. This is generally within 5 business days after there is no longer a security interest over the collateral:

• The time limit for goods without serial number is within 5 business days from the day it becomes clear that there is no longer a belief that a security interest exists (e.g. when a deal is no longer going ahead or you no longer have a security interest).
• The time limit for serial numbered goods is within 5 business days – this is usually when the debt is repaid.

Failure to discharge a PPSR registration within the defined time limit can lead to a breach of your legal obligations and attract a penalty.

As the Registrar, AFSA has the power to apply for a court order against a person that fails to remove a PPSR registration, including financial penalties for non-compliance.

If you provide PPSR support services, it’s important to inform your customers that they must advise you if a registration is no longer required, e.g. if they have a loan paid out early, so you can promptly discharge the registration.

For more information see PPSR timing rules - when you need to take action.

In the coming weeks, AFSA will be updating the PPS Register General Conditions of Use.

The changes will:

• reflect the regulatory obligations of users of the PPSR and the regulatory response that may be taken by the Registrar to refuse or suspend access to the PPSR, restrict a registration and to reinstate or remove data from the PPSR.
• include important information regarding availability, accuracy and inclusion of data from the National Exchange of Vehicle and Driver Information System (NEVDIS).

All PPSR account holders will be emailed when the update is complete and posted to the PPSR website.

Registered on the PPSR as of September 2024, there were:

• 5,406 aircraft (fixed and rotary/helicopters)
• 6,614 aircraft engines.

The main reason for this disparity in numbers is because many operators lease engines to reduce their operating costs as engines are very costly to maintain.

For any queries or feedback, please contact us

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