Alert: PPS Commencement Date
The Personal Property Securities Act 2017 (Act) will be commencing on 31 May 2019, representing a major reform for Fiji’s financial system.
The Act will overhaul secured lending in Fiji and will also have far-reaching consequences across a broad range of commercial transactions and arrangements.
If you are involved in lending, equipment leasing, the supply of goods, hire-purchase arrangements, or the commercial consignment of goods (to name a few) it is likely that the Act will affect your operations.
What is the significance of the Act?
The Act reforms the law of secured lending in Fiji, creating a standardised set of rules to determine the priority of competing security interests in moveable property. The Act also establishes a register of security interests (Register), allowing secured parties to electronically file notices of their security interests. The Register also gives users the ability to search and view details of any registered security interests.
What you need to do to be PPS Prepared?
The Register will be going live on 31 May 2019. The Act extends temporary protection to existing security interests, giving you 180 days to file a transitional notice on the Register. If you file a transitional notice on the Register on or before 26 November 2019, your security interest will have priority over any subsequent interests created under the Act. However, if you delay and the deadline passes, newer interests may have priority over yours.
Any new security interests created can be filed on the PPS from the commencement date. There are also certain types of securities which are excluded from the new regime, so it is important to now be on top of what is or is not included.
From our experiences elsewhere in the Pacific when this type of regime has been implemented, we have seen businesses taken by surprise and left in an unprotected position simply because they were not aware that their commercial arrangements had given rise to a registrable security interest. While registration may increase your administrative burden, it’s important you consider your commercial arrangements to identify whether a security interest is created and should be registered.
The Pacific Legal Network has advised extensively on PPS legislation across the Pacific Islands region. We can:
review your customer terms and conditions to identify whether a security interest is created;
amend your commercial arrangements to include PPS provisions;
ensure your security interests are protected.
For more information please contact:
T +61 422 452 023