Finalisation of PPS Regulations

17 December 2010

The new Personal Property Securities Regulations 2010 (Cth) were enacted late last month.

The Regulations were finalised after the government considered submissions in respect of an exposure draft that was released in April 2010.

The Regulations provide details in respect of many important aspects of the regime. For instance, the Regulations:

  1. provide limitations on the temporary perfection rule that is a feature of the two year transitional period allowed by the PPS regime;
  2. prescribe details of the data that must be included in financing statements for the registration of security interests;
  3. prohibit particular registrations of security interests in respect of personal property that is subject to certain court orders or legislation (eg proceeds of crime legislation); an
  4. specify the interaction of the PPS regime and the National Credit Code in respect of steps in the enforcement of security interests.

Further legislation to amend the PPS Act and related Corporations Act provisions is expected to be proposed early next year. While we expect that legislation to deal with some of the perceived flaws in PPS legislation, it may be that many issues will not be addressed.

At this stage, the PPS regime is still scheduled to commence in May 2011.

The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.

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