Licensees under Pawnbrokers Act 1908

Are you licensed under the Pawnbrokers Act 1908?

If so, is that licence still current?

A pawnbroker's licence under the Pawnbrokers Act 1908 will be current unless the pawnbroker has been "deprived" of it under the provisions of that Act.

If you answered yes to both of those questions, your current licence under the Pawnbrokers Act 1908 will become a "transitional licence" under the Secondhand Dealers and Pawnbrokers Act 2004.

Effect of a transitional licence

A holder of a "transitional licence" can trade on that licence for up to one year, without having to apply for a licence under the new Act.

Expiration of transitional licences

"Transitional licences" will expire on 1 April 2006. If, before 1 April 2006, a pawnbroker applies for and is issued with a licence under the new Act, the transitional licence will expire on the date that the new licence is issued.

Transitional licence holders require a new licence on 1 April 2006

If the new Act applies to your business and you want to continue to operate your business, you will need to apply for a licence under the new Act by 1 April 2006.

If you do not apply for a licence under the new Act you will not be able to continue trading as a pawnbroker. If you continue to operate your business without licence after 1 April 2006 you could face prosecution by the Police and face a fine of up to $20,000 by the Courts.

Obligations on transitional licence holders

If you trade under a "transitional licence" you have to comply with the requirements of the new Act from 1 April 2005.

Exemption from employee-related requirements for transitional licence holders

From 1 April 2005, anyone:

• who, with the authority of a licence holder, enters into a transaction on that licence holder's behalf; or
• that manages, supervises, or controls someone who enters into a transaction on the licence holder's behalf;

must hold a certificate.

That is the general rule. Those individuals who enter into a transaction with the authority of a transitional licence holder are exempt from having to hold a certificate. That exemption applies until the transitional licence expires.