ATHOC Annual Conference
September 16, 17 and 18, 2007
Conrad Jupiters – Gold Coast

We would like your suggestions for speakers, topics and anything else you would like to see at the ATHOC Annual Conference. Your feedback helps us to shape a conference that is beneficial to you. Email us with your ideas.

2007 EVENTS

Northern Seminar Day –
May 16th – Gold Coast Arts Centre

Australian Timeshare Christel House Open –
June 8th – Lakelands Golf Course

Northern Awards Gala Dinner –
July 18th – Royal Pines Resort

ATHOC Annual Conference -
September 16, 17 and 18 – Conrad Jupiters

Accor has formed a special trust to hold the assets of its planned Asian timeshare business.

Based on its Australian prototype, Accor Premiere Vacation Club (APVC), it will operate as a separate entity but members will have reciprocal rights.

APVC’s first timeshare units in Asia will be at the Novotel Nusa Dua resort in Bali, Indonesia. It also aims to open its first Asian sales centre in early April.

Other acquisitions are planned in Thailand, Malaysia, French Polynesia, Singapore, India and China.

With Australia and New Zealand having a combined population of only 25 million, Asia offers APVC much bigger growth potential, says chief executive Marty Kandel.

At the end of last year Accor moved to full ownership of APVC after buying out the 50 per cent stake held by the Becton Group, a Melbourne-based developer company.

In 2006 APVC invested $60 million in buying up resort apartments in Australia and New Zealand.

Advanced highlights from a new report on the explosive growth of fractional developments will be released at a special symposium later this month.

The report is based on a survey of 249 fractional developments in the United States, the Caribbean and Canada that represents a 39 per cent increase in the number of “fractionals” surveyed last year. In addition, NorthCourse says that fractional sales in North America increased 32 per cent in 2006 over the previous year with total sales volumes reaching $1.65 billion.

Kevin Wallace, CEO of NorthCourse, said: “These latest figures not only showcase the dynamic growth of the fractional industry throughout North America but also highlight NorthCourse’s increased and unparalleled ability to provide the most comprehensive tracking of the industry’s progress.”

The company also plans to release the report at the annual convention of the American Resort Development Association (ARDA) in Florida next month.

OTE Volume 7, issue 3.

A very positive meeting was held in Canberra between the Parliamentary Secretary to the Treasurer, The Hon. Chris Pearce, ASIC, ATHOC and Treasury. The main purpose was to discuss the changes that ASIC are currently implementing for the PS160 and its impact on ATHOC and our members.

One clear outcome of the meeting is that Government are in favour of the ISB concept and ATHOC having that role. It was agreed that:

• That  ASIC will submit to ATHOC in writing its rationale for eliminating the ISB concept and further agreed to review their earlier determination.
• ASIC and ATHOC agreed to "start fresh" with ASIC providing a written list of their concerns about the industry and ATHOC’s role as well as a statement of both their concerns and the reasons for their decisions (increasing cooling off period, for example) to ATHOC within 2 weeks. A face to face meeting to discuss outcomes and the way forward will be held following that.
• Everyone pledged a cooperative approach for the benefit of the industry and consumers. We requested that ASIC extend the time period for schemes to approve or challenge the changes to your respective AFS licenses. Unfortunately, John Price who is responsible for this area is out of the country and not back in the office until Monday for that decision to be confirmed.

Here is a brief outline of the changes under discussion:

The key policy amendments in [PS 160] focus on:

• allowing certain time-sharing operators with ASIC relief to have internal dispute resolution arrangements that meet s912A(2)(a) of the Corporations Act (the Act) rather than external dispute resolution arrangements;
• ensuring the cooling-off period for purchases of time-sharing interests is consistent with the 14 day period set out in the Act;
• granting licensing relief for certain time-sharing schemes for the resale of time-sharing interests; and
• removing the concept of an industry supervisory body from their policy.

TIME FRAMES

Time-sharing promoters, operators and schemes have until 30 September 2007 to comply with the new aspects of the ASIC policy. So, for example, time share operators will have until 30 September 2007 to comply with the updated cooling off requirements. Similarly, certain closed or member controlled clubs will have until 30 September 2007 before needing to meet internal dispute resolution requirements (instead of current requirement to be a member of an ASIC approved EDR scheme etc).

Existing exempt schemes may rely on the existing conditions in the ASIC exemption document previously issued until the end of September. For example, exempt schemes which satisfy the previous ISB condition by being members of ATHOC or of FICS will presumably still satisfy that condition until 30 September, 2007 by such membership.

The removal of the ISB concept applies from 7 February 2007.  Also the relief for timeshare operators who want to resell timeshare interests without holding an AFS license may be available immediately if an operator wanted to request it.

Internal dispute resolution arrangements

ASIC previously imposed a condition of relief for certain types of closed or member controlled time-sharing schemes that they belong to an industry supervisory body or external dispute resolution scheme.

It is now required that these time-sharing schemes have internal dispute resolution arrangements that meet s912A(2)(a) of the Act.

In having internal dispute resolution arrangements that meet s912A(2)(a) of the Act, ASIC expects that the internal dispute resolution procedures will:

• satisfy the Essential Elements of Effective Complaints Handling in Section 2 of AS 4269–1995; and
• be appropriately documented.

Cooling-off rights

Under these changes you will be required to have a cooling off period of 14 calendar days.

ASIC may grant case-by-case conditional relief from the licensing provisions to allow the resale of time-share interests for certain schemes that are exempt under state law, exempt title-based timesharing schemes or member controlled clubs.

There are a number of conditions on this relief:

1. no more than five per cent of the interests in the timesharing scheme should be re-sold in one calendar year;
2. a cooling-off period of 14 days applies to the resale;
3. there is a separate cooling-off statement and purchasers are given a copy of this statement to keep;
4. records are kept of the cooling off statements provided;
5. all money from a consumer is returned if the consumer decides not to proceed with the purchase of the interest in the timesharing scheme. No administration or other fees must be kept;
6. all money received for the re-sold time-sharing interests is:
• paid into an account that is held with an Australian authorised deposit-taking institution;
• paid into an account that only has money paid into it that is money received from consumers of re-sold interests in the timesharing scheme and interest on that amount;
• paid into the account on the day it is received or the next business day; and
• held in trust for the benefit of the consumer who paid the money until any cooling-off period has expired; and
7. the timesharing scheme belongs to an approved external dispute resolution scheme.

Removal of Industry Supervisory Body (ISB) concept from ASIC policy

ASIC has pre-empted the outcome of the Administrative Appeals Tribunal by making this announcement. We have not as yet heard from the AAT and are amazed that they should proceed with this at this time.

ATHOC have made a number of attempts to engage with ASIC on this issue and there was a constant change to their requirements. Hence the reason that ATHOC has taken this further. We cringe at their comment that “In the six years since that policy was made, no application was made to ASIC that satisfied these criteria.” Particularly given that we worked with their recommendations that were then not acceptable.

LEGAL ADVICE

You should note that ATHOC is not in a position to give legal advise to you and recommends that you should contact your solicitor for advice.

FULL DOCUMENT CAN BE FOUND AT
www.asic.gov.au/ps or call the ASIC Infoline on 1300 300 630.

Australian Government initiative Skills for the Future offers five different funding options for people of 25 years or older who are considering a career change and want to gain new skills or upgrade their qualifications.

The five funding initiatives include: Work Skills Vouchers worth $3000 each for adult 25 years or over without year 12 or certificate II qualifications who wish to upgrade their skills to this level. The vouchers can be used in any public, private or community college for all accredited basic education courses such as literacy and numeracy and certificate II courses such as mechanical, childcare, commercial cookery, hairdressing or business.

Support for Mid-Career Apprentices will provide financial assistance for workers aged 30 years or older taking up an apprenticeship from 1 July 2007.
Business Skills Vouchers for Apprentices provides funding for vouchers for
apprentices to be trained in small business skills. These vouchers are for $500 for apprentices and newly qualified tradespersons.

Funding for an additional 500 Commonwealth supported university places in
engineering to start from 2008.

Almost 25 000 Australian workers will be supported to undertake Diplomas
and Advanced Diplomas with employers receiving an incentive payment of
$1500 for each employee commencing an approved program and $2500 when they complete.

For further information on this exciting initiative please call my office on 5525
0688 or visit www.australia.gov.au/skillsforthefuture.

Margaret May MP
Federal Member for McPherson