Flex Commissions – What you need to know

Public news

A reminder for vehicle dealerships that the Australia Securities and Investments Commission (ASIC) Legislative Instrument prohibiting existing flex commission arrangements will come into effect from 1 November 2018.

The new rules preserve the Dealers’ rights to receive payments on discounted contracts, capping the amount payable at the 200bps level regardless of the actual discount beyond that.

They also preserve Dealer's rights to receive from finance provider’s payments that are not directly linked to the effective rate paid by a consumer for a particular loan.

If you have any questions in relation to the changes, click here to contact Industry Policy Specialist Nathan Robinson.