Target Market Determination (“TMD”)

Date this target market determination is in effect

5th October 2021

Financial Product Name

Secured Consumer Asset Loan

Financial Product Provider

Australian Premier Finance Company Pty Ltd (“APF”) ABN 54 104 959 435, Australian Credit Licence 390093

Financial Product Class

Asset Loan

Document Purpose

This document (“TMD”) serves to provide consumers, our distributors and our internal company staff an understanding of the class of consumers (“target market”) for which this product is designed, whilst further adhering to the requirement set out in the Corporations Act 2001 (Corporations Act) This TMD does not constitute advice. Consumers must consider any/all supplementary documents that further detail the full terms and conditions of this financial product.

Target Market

This Secured Consumer Asset Loan is designed to accommodate Individuals, or Co-Borrowers aged 18 to 62 years who meet APF’s
credit policy and seek to purchase a passenger motor vehicle or motorcycle between $5000 and $25,000, from a Licenced Motor Dealer or Private Seller. This target market may also seek the options to borrow more than the Value of the Vehicle purchase price to cover the costs of, but not limited to origination of the loan (including disclosed fees and charges), insurance, warranty and
vehicle delivery or transportation costs without an upfront payment or deposit.

Consumer Needs, Objectives and Financial Situation

This Secured Consumer Asset Loan is designed to accommodate individuals, and co-borrowers who:

  • are not borrowing for commercial purposes

  • are seeking to borrow for the purchase of an acceptable private use, road registerable motor car, SUV, 4WD or motorcycle acceptable to APF’s credit policies;

  • are seeking to borrow an amount between $5000 and $25,000 for the purchase of the vehicle*

  • are seeking to Own the asset at the completion of the loan

  • have an acceptable income source*

  • are Australian citizens or permanent residents with a fixed address

  • hold a Drivers licence that is compliant with the type of asset being purchased

  • may require additional borrowings above the asset value to pay for additional costs, but not limited to those of origination of the loan (including disclosed fees and charges), insurance, warranty and vehicle delivery or transportation costs without an upfront payment or deposit

  • accept that as the loan is a fixed rate loan an early termination fee may be payable if the loan is repaid earlier than the contract term.

  • Can service the principal and interest repayments disclosed on a loan contract – prior to their acceptance of it.

  • Agree to accept the loan terms and conditions as they are disclosed to them prior to acceptance of a loan offered by APF

*this secured consumer asset loan is subject to APF’s credit policies, lending terms and conditions and our responsible lending obligations under the National Consumer Credit Protection Act 2009.

Distribution Channels

The product is designed to be distributed in the following manner:

  • Direct to consumer via APF’s application link at www.apfc.com.au

  • Via APF accredited Finance brokers throughout the states and Territories of Australia

  • Via approved referral partners

Distribution Conditions

  • Distributors must be the holder of an Australian Credit Licence (ACL), an ACL representative (ACR), or authorised to engage in credit activity under a valid National Consumer Credit Act 2009 exemption or defence. Distributors must comply with all existing laws in relation to credit assistance, and Design and Distribution Obligations applicable to their retail product distribution conduct as disclosed in RG274 issued by ASIC.

  • Distributors must adhere to any reasonable DDO guidance issued by APF, including but not limited to complaints, significant dealings and TMD reporting.

  • All distributors are required to be accredited with APF and operate in accordance with any agreements and or processes issued upon them by APF.

  • APF provides eligibility criteria to its distributors that enable them to provide APF’s financial product to suitable consumers.

  • Distributors are not employed by APF. They are contractually independent of APF and act as agent for the consumer.

Alignment of these conditions to the target market

The distribution conditions promote industry best practice and regulatory compliance outcomes for consumers from APF’s authorised distributors. They further promote an independent approach of the distributor to ensure the requirements sought by the consumer are met within the target market

Review of this Target Market Determination

APF will review this TMD in accordance with the following;

Initial Review

  • Within twelve (12) months of the effective date

Periodic Reviews

  • At least annually from the date of the Initial review

Review Triggers

This TMD is to be reviewed within 10 business days where a trigger occurs

  • significant complaints, or significant numbers of complaints, indicating thatthe product did not meet the customer’s objectives, needs or financial situation;

  • significant numbers of hardship applications within 6 weeks of the loan being issued;

  • significant numbers of EDR negative findings indicating that the product didn’t meet the customer’s objectives, needs or
    financial situation;

  • material changes to the laws applicable to this product, the product features or terms or the distribution method; and

  • significant dealings outside target market, unless isolated to the conduct of a single distributor.

  • Guidance or direction from the Australian Securities and Investment Commission (ASIC) or Australian Financial Complaints Authority (AFCA)

Reporting and Monitoring

APF retain measured information of its loans, including but not limited to approved, declined and withdrawn application volumes,
arrears data, EDR complaints and outcomes, applications for hardship, and will align this information in accordance with the review triggers detailed above.

  • Distributors must report information about product complaints and distribution complaints to APF within24 hours of receipt.

  • Distributors must report information about Significant Dealings within 10 business days of identifying a potential Significant Dealing

  • All other reportable information is to be reported to APF within three months

APF_TMD Secured Consumer Asset Loan October 2021 V1.0