Footnotes

[1] Section 9. The definition is carried over from the same section of the old Corporations Law.

[2] 'Timeshare in Australia', FocusOn, Jones De LaSalle Hotels at www.joneslanglasallehotels.com (accessed 10 December 2004).

[3] 'Timeshare in Australia', FocusOn, Jones De LaSalle Hotels website (accessed 10 December 2004).

[4] Entry price for one week annually. The total contract price is conditioned by a number factors such as season booked and size of accommodation. ATHOC Submission 10, p.7; 10B, p. [2].

[5] ATHOC, Submission 10, p. 7.

[6] Mr John Reghenzani, Corporate Counsel, Accor Premier Vacation Club (APVC) and Mr John Robinson, Trendwest Resorts South Pacific (Trendwest), Transcript of evidence, 13 April 2005, p. 42.

[7] Susan Marks, Paradise Lost: CAB Clients Experience of Timeshare and Timeshare-like Products, The CAB Service UK's European Consumer and European Extra-Judicial Network, November 2003, p. 5.

[8] 'Timeshare and Holiday Ownership at A Glance', ATHOC www.athoc.com.au/m30/m30.htm (accessed 20 December 2004).

[9] 'Timeshare History', Marriott Vacation Club International at www.vacationclub.com/en-us/vc/about/history.asp (accessed 10 December 2004).

[10] Table: ATHOC website (accessed 20 December 2004).

[11] ATHOC website (accessed 2 December 2004).

[12] Statistics from Interval International quoted in FocusOn, Jones De LaSalle Hotels.

[13] The collapse of Estate Mortgage trusts prompted a review of the regulation of the collective investments system covering timeshare schemes. See discussion of the Companies and Securities Advisory Committee (CASAC) and the Australian Law Reform Commission (ALRC) report Collective Investments: Other People’s Money (1993) in Chapter 3 below.

[14] Interval International in FocusOn, Jones De LaSalle Hotels.

[15] 'Key Findings' Resort Timesharing in Australia and New Zealand, Ragatz Associates, RCI, April 2002, p. [2]; submitted by ATHOC.

[16] Submission 10, p. 9.

[17] Correspondence to the Committee, May 2003.

[18] Australian Corporations and Securities Legislation 2003, CCH Australia Limited, vol. 1, 2003, p. 8. Timeshare schemes are a subset of the 'other' category.

[19] Corporations Act 2001, s 764A.

[20] Excluding certain financial products that might otherwise be considered managed investments products, see s762A(3).

[21] s 911D.

[22] s 911A(1).

[23] s 912A.

[24] s 601FA and s 601FB(1).

[25] See ss 601GA(1) to (4).

[26] s 601HA(1).

[27] s 601HG.

[28] s 601HG.

[29] s 601JA to 601JJ.

[30] s 912A.

[31] s 912D.

[32] s 705.

[33] s714 (1)E.

[34] ASIC, Submission 9, p. 9.

[35] Australian Securities and Investments Commission (ASIC), Submission 9, p. 10, and see ASIC Class Order 04/1204, Time-Sharing Schemes—Extension of Time until 30 June 2005 to belong to an ASIC Approved Industry Supervisory Body, 30 September 2004; and Instrument 05/403, Time-Sharing Schemes–Extension of Time until 31 March 2006 to belong to an ASIC Approved Industry Supervisory Body, 22 April 2005.

[36] ASIC, Submission 9, p. 4.

[37] PS 160: 12.

[38] PS160:12 (f) and see discussion of transitional arrangements below.

[39] ASIC, Submission 9, p. 10.

[40] ASIC, Submission 9, p. 5.

[41] PS 135: 13.

[42] ASIC Media and Information Release IR 03-05, ASIC Grants Further Extension of Interim Relief for Non-Transitioning Managed Investment Schemes, 5 March 2003.

[43] ASIC, Submission 9, p. 5.

[44] Other exemptions in PS 160 were relief from valuation requirements, the exemption of rental pools, subject to certain conditions, and of non-accommodation based timesharing schemes.

[45] Where the responsible entity has appointed a suitably qualified custodian to hold scheme property, it must have a minimum of 0.5 per cent of the value of the scheme assets and other scheme property. The minimum NTA is $50,000 and the maximum $5 million.

[46] These levies must not be more than the responsible entity reasonably considers necessary for maintaining, refurbishing or improving scheme property or meeting expenses required by law.

[47] Malcolm Turnbull, Review of the Managed Investment Act 1998, 2001, p. 19.

[48] Mr Paul O' Shea, Lecturer at the Beirne School of Law, University of Queensland, Transcript of evidence, 28 April 2005, p. 4.

[49] Mr O'Shea, Transcript of evidence 28 April 2005, pp. 4-5, and See ATHOC Submission 10, p. 34.

[50] ATHOC, Submission 10, p. 34.

[51] INS 05/403, Time-Sharing Schemes—Extension of Time until 31 March 2006 to belong to an ASIC Approved Industry Supervisory Body, 22 April 2005.

[52] ASIC, Submission 9, p. 9.

[53] Now Corporations and Markets Advisory Committee (CAMAC)

[54] CASAC/ALRC report, Collective Investments: Other People’s Money, 1993, pp. xv‑xvi.

[55] See section 9 of the Corporations Act.

[56] Malcolm Turnbull, Review of the Managed Investment Act 1998, para. 5.3.3, p. 98.

[57] Mr Malcom Rodgers, Transcript of evidence, 28 April 2005 p. 12.

[58] Mr Malcom Rodgers, Transcript of evidence, 28 April 2005 p. 12.

[59] A New Tax System Goods and Services Tax (Amendment Regulations 2000 No. 2)

[60] See discussion, Senator Harris, Senate Hansard, 11 October 2001, p. 18343.

[61] Mr John Schwartz, Manager Special Projects, RCI Pacific, Transcript of evidence, 13 April 2005, p. 42.

[62] Mr Martin Kandel, Executive Officer, APVC, Transcript of evidence, 13 April 2005, pp. 35–36.

[63] ATHOC Submission 10, p. 18; Tourism and Transport Forum (TTF) Submission 16, p. [2].

[64] Consumer Credit Legal Service, Submission 5, p. 2; Ms Catherine Wolthuizen, Senior Policy Officer, ACA, Transcript of evidence, 15 April 2005, pp. 1–2.

[65] CCLS, Submission 5, p. 1.

[66] RCI Pacific, Submission 12, p. 3; Becton Group Holdings, Submission 13, p. 1.

[67] Associate Professor Mike Dempsey, Head of Finance Discipline, Department of Accounting, Economics and Finance, Griffith University, Transcript of evidence, 13 April 2005, p. 2; Mr Paul O'Shea, Lecturer at the Beirne School of Law, University of Queensland, Transcript of evidence, 28 April 2005, p. 2.

[68] Mr Brian Gillard, Member, Legislation Reform Taskforce, CLA, Transcript of evidence, 15 April 2005, p. 2.

[69] Mr Paul O' Shea, Transcript of evidence, 28 April 2005, pp. 2–3; Consumer Credit Legal Service, Submission 5, p. 3.

[70] P.O' Shea and Dr C. Finn, 'Consumer Credit Code Disclosure: Does It Work?', Journal of Banking and Finance Law Practice 5, vol. 16, March 2005.

[71] See for example, Trendwest Resorts South Pacific, Submission 8, p. 6.

[72] ATHOC, Submission 10, p. 29.

[73] Paradise Timeshare Club, trading as Port Pacific Resort, Submission 4, p. 3.

[74] Mr Clive Constance, Transcript of evidence, 15 April 2005, p. 49.

[75] For example, Consumer Credit Legal Service, Submission 5, p. 2.

[76] Mr Paul O'Shea, Transcript of evidence, 28 April 2005, p. 3.

[77] See Consumer Credit Legal Service, Submission 5, p. 2.

[78] Ms Catherine Wothuizen, ACA, Transcript of evidence, 15 April 2005, pp. 1–2.

[79] ATHOC, Submission 10, p. 3.

[80] Trendwest, Submission 8, pp. 5; 4.

[81] Trendwest, Submission 8, p. 5.

[82] Mr George Dutton, Transcript of evidence, 13 April 2005, p. 49.

[83] TTF, Submission 16, p. [3].

[84] Paradise Timeshare Club, trading as Port Pacific Resort, Submission 4, p. 3.

[85] Mr John Nissen, Resort Manager, Kyneton Bushland Resort Limited, Transcript of evidence, 15 April 2005, p. 44.

[86] Kyneton Bushland Resort Limited, Submission 14.

[87] Mr Dennis Grimes, Administration manager, Eastcoast Timeshare Group, Transcript of evidence, 28April 2005, p. 24.

[88] Law Institute of Victoria, Submission 3, p. 3.

[89] Mr Shin Siow, Transcript of evidence, 13 April, p. 41.

[90] Directive 94/47 EC, European Parliament and Council, 26 October 1994.

[91] 'Timeshare', EUROPA European Commission of Consumer Affairs,
http: europa.eu.int/comm./consumers/cons_int/safe_shop/timsaher/index_en.htm (accessed 21 January 2005)

[92] Report on Application of Directive 94/47/EC of the European Parliament and Council of 26 October 1994, SEC (1999) 1795 final, p. 9.

[93] ASIC, Submission 9, Attachment A, p. 13.

[94] Report on Application of Directive 94/47/EC, p. 9.

[95] Susan Marks, 'Key Recommendations' Paradise Lost: CAB Clients Experience of Timeshare and Timeshare like Products, The Citizens Advice Bureau, November 2003, p. 3.

[96] Mr Martin Kandel, Transcript of evidence, 13 April 2005, pp. 39–49

[97] Mr George Dutton, Transcript of evidence, 13 April 2005, p. 49.

[98] The 2004 Florida Statues, The Florida Senate at www.flsenat.gov/statues/index.cfm
(accessed 13 June 2005)

[99] The legislation covers, but is not limited to, condominiums, cooperatives, undivided interest campgrounds, cruise ships, vessels, houseboats, recreational vehicles and other motor vehicles, and includes, vacation clubs, multi-site vacation plans, and multiyear vacation and lodging certificates. 721.02 (5).

[100] 721.02 (5).

[101] 721.23.

[102] 721.18.

[103] 721.20 (1).

[104] ASIC, Submission 9, Attachment A, p. 13.

[105] SEC Release No. 33-5347. ASIC notes that this is consistent with the decision in SEC v WJ Howey, 328 US 293, 329 US 819 (1946) where the United States Supreme Court emphasised the need to consider the purpose of securities laws rather than the substance of the form when deciding whether an interest is a security. ASIC, Submission 9, Attachment A, p. 13.

[106] Mr John Price, Transcript of evidence, 28 April 2005, p. 12.

[107] Mr Malcolm Rodgers, Transcript of evidence, 28 April 2005, p. 12.

[108] Queensland Department of Tourism, Fair Trading and Wine Industry Development, Submission 2.

[109] Queensland Department of Tourism Fair Trading and Wine Industry Development, Submission 2, p. 4.

[110] Ms Catherine Wolthuizen, Transcript of evidence, 15 April 2005, p. 2.

[111] Mr Martin Kandel, Transcript of evidence, 13 April 2005, p. 37.

[112] ATHOC, Submission 10, p. 34.

[113] Mr Paul O' Shea, Lecturer at the Beirne School of Law, University of Queensland, Transcript of evidence, 28 April 2005, pp. 4–5.

[114] Mr Paul O' Shea, Transcript of evidence, 28 April 2005, p. 3.

[115] See s.51AAB.

[116] Trade Practices Act 1974 s.4.

[117] ATHOC, Submission 10C, p. 1.

[118] Mr Paul O' Shea, Transcript of evidence, 28 April 2005, p. 6.

[119] Assoc. Prof. Mike Dempsey, Head of Finance Discipline, Department of Accounting, Economics and Finance, Griffith University, Transcript of evidence, 13 April 2005, p. 6.

[120] Mr Malcolm Rodgers, Executive Director, Regulation, Transcript of evidence, 28 April 2005, p. 13.

[121] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 25.

[122] Mr Martin Kandel, Transcript of evidence, 13 April 2005, p. 37.

[123] ATHOC, Submission 10, p. 21.

[124] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 13.

[125] See discussion in the next chapter.

[126] Australian Timeshare and Holiday Ownership Council (ATHOC), Submission 10, p. 7.

[127] Mr Ramy Filo, ATHOC President, Transcript of evidence, 13 April 2005, p. 18.

[128] Associate Professor Mike Dempsey, Head of Finance Discipline, Griffith University; Mr Ramy Filo, Transcript of evidence, 13 April 23005, pp. 11; 33.

[129] Mr Martin Kandel, CEO, Accor Premier Vacation Club (APVC), Transcript of evidence, 13 April 2005, p. 40.

[130] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 29.

[131] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 18.

[132] Mrs Marie Robbie, Immediate Past President, Southern Gold Coast Chamber of Commerce and Human Resource Manager, Classic Holidays, Transcript of evidence, 13 April 2005, p. 58.

[133] Mr Paul O'Shea, Lecturer at the Beirne School of Law, University of Queensland, Transcript of evidence, 28 April 2005, p. 1.

[134] Mr Gary Knowles, Vice President and CEO, RCI Pacific, Transcript of evidence, 13 April 2005, p. 43.

[135] ATHOC, Submission 10C, para 4.0.

[136] Mr Jason Coppard, Inquiry into the regulation of property investment advice, Transcript of evidence, 28 April 2005, p. 16.

[137] See Mr Ramy Filo, Transcript of evidence, 13 April 2005, pp. 26–27.

[138] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 26.

[139] This example was from APVC but the Committee considers it consistent with general practice.

[140] All emphases in the original.

[141] See ACCC News Release 'ACCC Gains Court Orders on Timeshare', 7 January 1997, relating to the sales practices of the timeshare firm Holiday Concepts.

[142] Ms Catherine Wolthuizen, Senior Policy Officer, ACA, Transcript of evidence, 15 April 2005, p. 1.

[143] Mr Martin Kandel, Transcript of evidence, 13 April 2005, p. 41.

[144] Mr Ramy Filo, Transcript of evidence, 13 April 2005, p. 25.

[145] Members of the old style title-based schemes are an exception. They are discussed in more detail in Chapter 6.

[146] See below for discussion of Schumer boxes.

[147] Mr George Dutton, Chief Financial Officer, APVC, Transcript of evidence, 13 April 2005, p. 50.

[148] Ms Jodie Sangster, Transcript of evidence, 15 April 2005, p. 25.

[149] ATHOC, Submission 10, p. 25.

[150] ATHOC, Submission 10, p. 26.

[151] Associate Professor Mike Dempsey, Transcript of evidence, 13 April 2005, p. 3.

[152] ATHOC, Submission 10, p. 25.

[153] ATHOC, Submission 10, p. 26.

[154] Mr Joseph Bengasino, Director and Legal Adviser, ATHOC, Transcript of evidence, 13 April 2005, p. 25.

[155] Transcript of evidence, Mr Paul O'Shea, 28 April 2005, p. 4.

[156] Summary drawn from Financial Services Reform Bill 2001, Explanatory Memorandum, Parliament of Australia, House of Representatives, paras 12.6; 12.50; and 14.28.

[157] Mr Shin Siow, Senior Counsel, Trendwest, Transcript of evidence, 13 April, 2005, p. 37.

[158] Trendwest, Submission 8, p. 6.

[159] RCI Pacific, Submission 12, p. 5.

[160] ATHOC, Submission 10, p. 5.

[161] Mr Shin Siow, Transcript of evidence, 13 April 2005, pp. 51–52.

[162] Ms Catherine Wothuizen, ACA, Transcript of evidence, 15 April 2005, p. 3.

[163] Treasury (2005) Refinements to Financial Services Regulation, p. 12.

[164] Mr Paul O' Shea, Transcript of evidence, 28 April 2005, p. 4.

[165] Mr Martin Kandel, Transcript of evidence, 13 April 2005, p. 38.

[166] Mr Brian Gillard, Member, Legislation Reform Task Force, Commercial Law Association, Transcript of evidence, 15 April 2005, p. 9.

[167] Mr John Nissen, Resort Manager, Kyneton Bushland Resort, Transcript of evidence, 15 April 2005, p. 34.

[168] Kyneton Bushland Resort, Submission 14, p. 2.

[169] Mr John Nissen, Resort Manager, Kyneton Bushland Resort, Transcript of evidence, 15 April 2005, p. 33.

[170] Mr Dennis Grimes, Administration Manager, Eastcoast Timeshare Group, Transcript of evidence, 28 April 2005, p. 24.

[171] Mr John Nissen, Transcript of evidence, 15 April 2005, p. 32.

[172] Mr David Lindsay, Member, Law Institute of Victoria, Transcript of evidence, 28 April 2005, p. 23.

[173] This raises a constitutional issue as to whether the agency could be a Commonwealth Agency. The Commonwealth can resume land on just terms under s.51 (xxxi) of the Constitution, but only for a purpose 'in respect of which the Parliament has power to make laws'. If this scheme does not fall within that power, each affected state would need its own agency.

[174] Port Pacific Resort, Submission 4, p. 1.

[175] Mr Malcolm Rodgers, Executive Director, Regulation, Transcript of evidence, 28 April 2005, p. 21.

[176] Mr John Nissen, Transcript of evidence, 15 April 2005, pp. 31–32.

[177] See evidence from Dr John Keogh, President, Commercial Law Association, Transcript of evidence, 15 April 2005, p. 19.