Peter EdwardsNational Manager Client Services Division Deputy Registrar of Personal Property Securities

Personal Property Securities Register Australian Experience

•History

•Implementation issues

•Operational model

•Recent issues / events

Overview

• Population: 23 million

• Main language: English + 300 others

• Sixth largest country (land area)

• Two million actively trading businesses

• $AU500 billion in personal lending

A little about Australia

• Numerous Acts and Registers

• Lack of a uniform approach

The past approach

Agricultural Chemicals Distribution Patents Act 1990 (Cth)Air Navigation Act 1920 (Cth)Australian Industry Development Corporation Act 1970 (Cth)Australian Register of Company Charges (Cth)Australian Register of Ships (Cth)Bills of Sale (Fees) Regulations 1983Bills of Sale (Fees) Regulations 1995Bills of Sale (Requirements as to Instruments) Regulations 1995Bills of Sale and Other Instruments Act 1955 (Qld)Building Act 2000 (Tas)Building And Construction Industry Security Of Credit Act 1984 Vic)Building and Construction Industry Security of Payments Act 1999 (NSW)Chattel Securities Act 1987 (Vic)Chattel Securities Regulations 1997Commonwealth Inscribed Stock Act 1911 (Cth)Confiscation Act 1997 (Vic)Consumer Credit (New South Wales) Act 1995 (NSW)Consumer Credit (Tasmania) Act 1996Consumer Credit Act 1995 (ACT)Control Act 1966 (Qld)Conversion Act 1921 (Cth)Conversion of Securities Adjustment Act 1931 (NSW)Conveyancing Act 1919 (NSW)Co-operatives Act 1992 (NSW)Co-operatives Act 1996 (Vic)Cooperatives Act 1997 (QLD)Cooperatives Act 1999 (Tas)

Cooperatives Act 2002 (ACT)

Co-operatives Housing and Starr-Bowkett Societies Act 1998 (NSW)Co-operatives Regulations 1997Cooperatives Regulations 2003Copyrights Act 1968 (Cth) Corporations Act 2001 (Cth)Credit (Rural Finance) Act 1996 (Qld)Credit Act 1984 (NSW)Credit Act 1985 (ACT)Designs Act 2003 (Cth)Disposal Of Uncollected Goods Act 1961 (Vic)Disposal Of Uncollected Goods Goods Act 1968 (Tas)Domestic (Refal and Nuisance) Animals Act 1994 (Vic)Duties Act 1997 (NSW)Duties Act 2000 (Vic)Factors (Mercantile Agents) Act 1923 (NSW)Factors Act 1891 (Tas)Fair Trading Act 1999 (Vic)Finance Brokers Control Act 1975 (WA)Fines Act 1996 (NSW) Fines, Penalties and Infringement NoticesFisheries Act (Vic)Fisheries Act 1995 (Vic)Fisheries Management Act 1991 (Cth)Forestry Rights Act 1996 (Vic)General Register of Deeds (Registration of Deeds Act 1957 (ACT))General Register of Deeds (Security Interests in Goods Act 2005 (NSW))Goods Securities Regulations 1997Hemp Fibre Industry Facilitation Act 2004 (ACT)

Major reform

Homes Act 1935 (Tas)Impounding Act 1993 (NSW)Instruments (Fees) Regulations Instruments Act 1933 (ACT)Land Titles Registry and General Registration Office (NT)Legal Aid Commission Act 1979 (NSW)Legal Practitioners Act 1968 (SA)Loans Securities Act 1919 (Cth)Loans Securities Redemption and Offshore Minerals Act 1994 (Cth)Mercantile Law Act 1962 (ACT)Mining Act 1992 (NSW)Motor Car Traders Act 1986 (Vic)Motor Dealers RegulationsMotor Vehicle Securities Act 1984 (Tas)Offshore Minerals Act 1999 (NSW)Offshore Petroleum Act 2006 (Cth)Partnership Act 1891 (Tas)Partnership Act 1892 (NSW)Partnership Act 1958 (Vic)Partnership Act 1963 (ACT)Pawnbrokers Act 1902 (ACT)Pawnbrokers And Second-Hand Dealers Act 1996 (NSW)Payments Act 1999 (NSW)Payments Act 2002 (Vic)Penalty Unites and Other Penalties Act 1987Petroleum (Onshore) Act (NSW)

Pharmacy Practice Act 2006 (NSW)Property Law Act 1958 (Vic)Public Trustee Act 1941 (WA)Public Trustee Act 1985 (ACT)Register (Bills Of Sale Act 1886 (SA))Register of authorisations (Fish Resources Management Act 1994 (WA))Register of Charges for Co-operative housing bodies (NSW)Register of Cooperative Charges (ACT)Register of Co-operative Charges (NSW)Register of Co-operative Charges (NT)Register of Co-operative Charges (SA)Register of Cooperative Charges (Tas)Register of Co-operative Charges (Vic)Register of Designs (Cth)Register of Encumbered Vehicles (REVS) (NSW)Register of Interests in Motor Vehicles and Other Goods (NT)Register of legal and equitable interests in exploration licences, assessment leases and mining leases (NSW)Register of legal and equitable interests in petroleum titles (NSW)Register of Liens (Liens on Crops of Sugar Cane Act 1931 (Qld))Register of Liens on Crops, Register of Liens on Wool and Mortgages of Stock (Vic)Register of mortgages of mineral development licences (Vic)Register of Patents (Cth)Register of Plant Breeder’s Rights (Cth)Register of Security Interests (Bills of Sale and Other Instruments Act 1955 (Qld))

The PPSR replaced legislation

Register of Security Interests (Motor Vehicles and Boats Securities Act 1986 (Qld))Register of Trade Marks (Cth)Register under Registration of Interests in Goods Act 1986 (NSW)Registrar-General to collate (Instruments Act 1933 (ACT))Registration Of Interests In Motor Vehicles And Other Goods Act 1983 (NT) Co-operatives Regulations and Admiralty Act 1988 (Cth)Registry Book (Bills Of Sale Act 1899 (WA))Rights in Water and Irrigation act 1914(WA) Act 1983 (NT)Road Safety Act 1986 (Vic)Road Traffic Act (NT)Sale of Goods (Vienna Convention) Act 1987 (Vic)Sale Of Goods Act 1895 (SA)Sale Of Goods Act 1896 (Tas)Sale Of Goods Act 1972 (NT)Second-Hand Dealers and Pawnbrokers Act 1989 (Vic)Second-Hand Dealers and Pawnbrokers Act 1994 (Tas)Second-Hand Dealers and Pawnbrokers Act 1996 (SA)Shipping Registration Act 1981 (Cth)State Offshore Mining Register (NSW)Taxation Administration Act 1953 (Cth)The Register (Bills Of Sale Act 1900 (Tas))The Register (Chattel Securities Act 1987 (WA))The Register (Goods Securities Act 1986 (SA))

The Register (Liens On Fruit Act 1923 (SA))The Register (Motor Vehicle Securities Act 1984 (Tas))The Register (Stock, Wool And Crop Mortgages Act 1930 (Tas))Trade Marks Act 2995 (Cth)Traffic Act (NT)Transport Act 1983 (Vic)Treasury Bills Act 1914 (Cth)Tribunal Act 1998 (Vic)Trustee Act 1958 (Vic)Uncollected Goods Act 2004 (NT)Vehicle Securities Register (Chattel Securities Act 1987 (Vic))Victorian Civil and AdministrationWarehouseman's Liens Regulations 2007Warehousemans’ Liens Act 1935 (NSW)Warehousemen's Liens Act (NT)Warehousemens’ Liens Act 1958 (Vic)Water Management Act 2000 (NSW) Wool International Act 1993 (Cth)

The PPSR replaced other registers

Objectives of the reform

• Increase certainty

• Increase consistency

• Reduce complexity

• Reduce costs

• PPSR went live end of January 2012

- Completely online

- Service support via AFSA’s National Service Centre

• Implementation issues

- Data migration

- Effectiveness of communication

- System outages

Implementation

• Attorney-Generals Department Policy

• AFSA Operations

Management of ICT systems Stakeholder engagement Procurement and contract management Amendment demands / transactional surveillance

Governance Sub-committee of the National Management Board

Management of PPSR

Number of searches on the PPSR

2013 20146,000,000

6,200,000

6,400,000

6,600,000

6,800,000

7,000,000

7,200,000

7,400,000

Calendar year

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Number of current registrations on the PPSR

As at 31 Dec 2012 As at 31 Dec 2013 As at 31 Dec 20140

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

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Current PPSR registrations by collateral class

Motor vehicle

Other goods

All present and after acquired property

All present and after acquired property, except

Intangible property

Agriculture

Watercraft

Financial property

Aircraft

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

50.9%

22.6%

21.0%

2.6%

1.0%

0.8%

0.5%

0.4%

0.2%

Proportion of current PPSR registrations

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http://www.afsa.gov.au/about-us/ppsr/ppsr-statistics

• Section 342 Personal Property Securities Act 2009

Required review of Act to be completed by January 2015

• Final Report released on 18 March

www.ag.gov.au/ppsareview.

Highlighted transitional issues and complexity

Made number of recommendations for improvement

Legislative review

• Close working relationship with stakeholders

Peak Body Stakeholder Forum

Operational Forum

Technical Forum

• Enhancement program - co-design with industry

Successes

• Private – Public Relationship

Around 200 organisations maintain business to government (B2G) interface

80% transactions on the register via B2G

• AFSA’s role

Manage administrative amendment demand process

Equity of access

- WebUI- Search & service support via National Service Centre- Foster and promote competitive environment between

B2Gs

Successes

• Federal Court decision

SFS Projects Australia Pty Ltd v Registrar of Personal Property Securities (No 2) [2014] FCA 987

Recent novel issue

Questions