Have the problems migrating charges from ASIC to the PPS Register been fixed?

In the latest PPSR update (July - August 2012), ITSA notes the following matters regarding the migration of charges from the ASIC database to the PPS Register.

First, ASIC has published a list of approximately 6000 charges that were on the ASIC Register of Company Charges but were not migrated to the PPSR due to technical issues arising in the migration. See the ASIC website (www.asic.gov.au) for more details.

The non-migrated charges should be registered on the PPSR before the end of the 24 month transitional period ending in January 2014 to ensure that they remain perfected security interests. If they are registered on the PPSR after the expiration of the transitional period, the start date for priority purposes will be the date of registration.

Secured parties that notify ITSA of registration of those charges on the PPSR may be eligible for a payment in respect of each relevant charge (subject to validation by ITSA). To apply, please read, complete and lodge the form 'Notification of re-registration of non-migrated security interests (including application for payment)' available via the link shown below.

ITSA recommends that secured parties submit notification forms no later than 31 October 2012.

Secondly, Data migration issues – Update

Implementation of the ASIC ACN/ABN data fix (known as CR089) was completed in June. This resulted in changes to 885,238 registrations migrated from the Register of Company Charges, to replace grantors identified on the PPSR by an ABN with the same grantors identified by an Australian Company Number (ACN), where the grantors had both an ABN and an ACN. As noted on the Announcements page at www.ppsr.gov.au, among the registrations affected were 484 registrations that should have had grantors identified by ARBN (not ACN). The majority of the affected grantors are foreign companies, but included is a small set of Australian non-companies (for example, cooperatives) which should be identified by ARBN. A programmatic solution is being developed to substitute ARBN for ACN for the affected entities. This is expected to be implemented at the end of this month. In the meantime, users performing organisational grantor searches by ARBN should consider searching by entering the ARBN of the target grantor entity into both the ACN and ARBN fields on the PPSR.

The online version of the entire newsletter can be accessed at:

http://ppsr.cmail4.com/t/ViewEmail/j/3F7E1E0513DBD135/0C4CF92B4B2F15A2C67FD2F38AC4859C

W G Stark
Hayden Starke Chambers