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Personal Property Securities

12-Dec-2011

On my last ICB bookkeepers networking meeting for the year we had 2 very interesting guest speakers.

Sundip Ghedia from Wyndhamprem Lawyers (Commercial Law) and Robert Moodie from Rodgers Reidy, Insolvency Experts speaking about the new Personal Property Securities Register. As we found out during a lively discussion that night this register is aimed to reform the current Australian states regulations and to bring everything under one register. It had been meant to start last October, however due to the complexity of the issue it is now set to start as of 1st July 2012 (or even later). It will cover the interests in property excluding land, water and buildings.

The new register will be administered by ITSA – Insolvency Trustee Society Australia aiming at establishing an orderly sequence of interest based on the time of registration. Or in other words first in first served, based on the recorded time on the certificate one receives when registering interest in a certain asset.

The second point of interest with the new register is the “retention of title” clause, which in short means that – even if a sold product is being transformed through manufacturing processes, the registered interest is still valid. As you can see here comes the complexity of the whole issue to surface.

Furthermore the register is a transaction based process, which means if one has 200 clients, one has to register the interest in each transaction with the register – and we assume one will have to also de-register when it finally has been paid off. As bookkeepers being used to a lot of paperwork we all could see that this might end up in an incredible amount of work for the business owners or a new service area for us bookkeepers. Apparently there might even be courses run next year in order to learn the registration process.(This was an assumption based on the complexity of the issue)
A lot of issues were raised and looking across the water to New Zealand, where this register is already in action we can be looking forward to a bit of upheaval  and “teething problems” once it will come into action.

After an hour of lively discussion about this and all the issues which we raised in relation to this, our first conclusion was that we invited the speakers back for a further talk next June, closer to the date of starting this register in order to find out more specifics. This will hopefully be a more hands on – practical approach to the how and where of registering interests in Assets as security.
At the moment all we know is that you have to make sure you dot your i’s and cross your t’s to really protect and register your interests once this register starts.

So for the time being watch this spot for further information latest in June2012.