The Treasury Laws Amendment (2023 Measures No. 3) Bill 2023 has been passed by both houses of Parliament to amend the: Corporations Act 2001 to prohibit schemes designed to avoid the application of a product intervention order relating to a credit facility. Background.

UPDATE: Royal Assent given on 20 September 2023.

The Bill supplements the Financial Sector Reform Act 2022 to extend anti-avoidance measures to encourage compliance with the Credit Act to introduce provisions regarding the prohibition to avoid
relevant product intervention orders in the Corporations Act.

The Bill introduces new rules that prohibit schemes designed to avoid the application of a product intervention order (in relation to a credit facility) made under Part 7.9A of the Corporations Act.

The amendments ensure that when there is a product intervention order made in relation to a financial product that is a credit facility a person (alone or with others) must not engage in activity in the
avoidance of that product intervention order.

Failure to comply with any of the new prohibitions attracts a civil penalty in accordance with the Corporations Act.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.