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Published 04 May 2012 11:33, Updated 05 May 2012 11:33
Three months after it was unveiled, an adviser has slammed the federal government’s new personal property securities register (PPSR), calling it “a user’s nightmare”. The register was implemented as part of legislation that replaced numerous registers and laws around the country.
Businesses register interests in assets held by other parties, such as where they extend credit or lease equipment. The intention is that creditors have a greater chance of having assets returned in the event that the other business becomes insolvent.
But partner at TurksLegal Daniel Turk says what should be straightforward registrations are time-consuming and unnecessarily complicated.
“The overwhelming feedback from business is that the functionality of the PPSR is off the mark,” says Turk.
“Businesses seeking to enter their securities on the . . . register are encountering questions laden with legalese and impractical requests for unnecessary or difficult to obtain information.”
For example, if a customer is a sole trader, a business needs to include details such as date of birth when they are lodging a registration.
“You could have a business that supplies magazines to newsagencies for example . . . and it needs to register if it retains title for those magazines,” Turk says. “They could be a sole trader. They often are. You may have been dealing with them forever and now you need their date of birth. It becomes impractical for the supplier.”
A spokesperson for the Insolvency and Trustee Service Australia, which operates the register, says it is important that parties are able to be readily identifiable by people searching the register.
The spokesperson says a survey of user opinions will be conducted shortly to identify areas for improvement.