1. International Association of Auto Theft Investigators
Jane Nitschke
Australian Financial Security Authority
Seminar Partners:
Platinum Gold Gold Gold Silver

2. PPSR – How does it contribute to MV theft reduction?
Jane Nitschke
Stakeholder Engagement Advisor
PPSR Strategy & Operations
Australian Financial Security Authority

3. What is the PPSR? Single, national online noticeboard www.ppsr.gov.au
Available 24/7
Statistics 9.7 Million registrations
(4.7 Million are MVs) Million searches per year
Search $3.40
Register $6.80 for up to 7 years $34 for up to 25 years $119 for indefinite period
I thought I’d start with a quick summary of what the PPSR is all about
The Personal Property Securities Register – known simply as the PPSR – is a national online noticeboard of security interests in personal property
It that shows you whether a business (or an individual) is claiming an interest against goods or assets of another business (or individual)
A security interest in property means that the property has been given up as collateral to secure an obligation owed by someone
An example of a security interest is the interest a bank might take in car when they have lent the money needed to buy it.
Other transactions that might create a security interest include – selling on terms (ROT terms), consignments or even longer term lease arrangements
It’s replaced more than 35 different registers – state based registers like REVs (vehicle register) and national registers such as ASIC’s Register of Company Charges – are now closed to new entries and have been replaced by the PPSR
Personal property is a legal term and covers all types of property except land, buildings and fixtures.
So movable goods like cars, boats, trailers, heavy machinery and equipment, crops, livestock, artworks, intellectual property, shares, bank accounts – basically anything that isn’t nailed down can be used as collateral and those security interests can be registered on the PPSR to protect the secured party – should the customer default or go broke.
The register can be accessed at and is available 24hrs a day, seven days a week.
It’s administered by AFSA - Commonwealth Government agency, which also responsible for delivery of Australia’s personal insolvency laws.
The PPSR is basically an electronic noticeboard – it is a ‘list’ of secured parties claiming a security interest in their property against a particular grantor. It doesn’t ensure the validity of the security interest – the validity of the registration is determined by the underlying security agreement between the parties.
Since it launched in 2012, the PPSR has recorded more than 9.7 million registrations – approx. half are MV registrations – and it’s searched over 8 million times per year
Fees are calculated on a cost recovering basis – and depend on duration.

4. PPSR – what’s it purpose?
Delivers
Economic enablement
Risk management
Consumer protection
The PPSR is a key piece of financial infrastructure for Australia.
Through its role in underpinning secured lending across the economy, the PPSR is conservatively estimated as supporting around a quarter of Australia’s GDP.
At it’s core, the policy rational for overhauling Australia’s secured transactions law was obvious…
Reduce the cost of borrowing and increase the range of property available to raise capital – especially for SMEs by replacing the previous messy patchwork of old laws with a single set of rules ….
…. And for this set of rules to apply consistently and predictably to ALL types of personal property
But it’s the purpose of the PPSR that I want to focus on today.
As acknowledged by the world bank – a robust secured transactions system delivers three outcomes:
First – it provides
Enhanced access to finance and economic enablement – that means easier access to credit, as there’s a broader range of property that can be offered up as collateral to raise finance
Second
Improved Financial Risk management – provided through protection for security holders against their customer’s insolvency
Third
Better Consumer protection – For consumers it’s about making sure those valuable second-hand goods they are buying are debt free and safe from repossession

5. PPSR Business strategy
Since commencement of the register, our priority has been on understanding the ecosystem of the PPSR (environment) and establishing effective operations
Now in it’s sixth year of operation – there are a number of critical components which require our focus as we look to the future – and the PPSR business strategy builds on these four priorities…
Each of these icons represents an integral component of our overarching strategy – and I’d like to discuss the role you play in contributing to the PPSR’s data quality and accessibility – and how this helps to drives down MV theft reduction.
These four elements consider AFSA’s role as the….
Custodian of quality data
Leveraging strategic partnerships
Technology for the Future
Strengthen our role as the Trusted Authority

6. Custodian of quality data
Encumbrance data
Stolen Data
Written off data
As the sole source for this critical data we need to ensure that the data can not only be relied upon by users, but allows analysis and modelling as a trusted source of key economic data – such as the Carsafe team and the valuable modelling work they are doing
When users conduct a MV search through the PPSR – they are provided with :
Encumbrance data – this is the security interest information
Stolen data – as supplied to us from NEVDIS (national exchange of vehicle and driver information)
- which in turn is sourced from the Australian Criminal Intelligence Commission (ACIC)
Written-off data – as supplied to us from NEVDIS
– which in turn is sourced from the state and territory road transport authorities (RTAs)

7. Sample search certificate
Here’s an example of a PPSR search certificate
One that shows there’s no money owing and one that flags a security interest exists
As you can see the search result provides a simple yes / no response
but ‘taking free’ rules apply – which means that if a buyer conducts a search the day of – or day before the purchase – and there is no SI flagged against that VIN – then they take free of any prior SI
In practical terms this can be problematic – as has been highlighted by our vehicle financing stakeholders – where they’re aware of people buying a car on finance, walking out of the dealership and immediately selling it. No encumbrance was recorded in that short period, so the buyer takes fee – and the dealership loses out.
Clearly TIMELINESS is key!
There’s two ways to search the PPSR
By serial number (which is a VIN for consumer MVs)
Or by grantor details (an individual’s name or company name)
This is important because…
Serial numbers associated with heavy earth moving equipment, bobcats, forklifts etc are generally a manufacturer’s number – which in some cases is not unique – therefore users may need to conduct multiple searches ie by both serial number and against the customers name and company name to ensure there’s no existing encumbrance

8. Stolen data This is an example of a stolen notification:
NEVDIS Stolen Vehicle Notification:
Engine, 31 Jan 2008, QLD, POL JUR-Q-REFXXXXXXX
If there is a stolen listing you may wish to contact the seller, who can query the stolen information with Police.
All stolen restrictions on NEVDIS are recorded by the various Australian state and territory police jurisdictions via a system known as NVOI (National Vehicles of Interest), this system is managed by the ACIC
If the vehicle has been reported stolen – there are 3 stolen indicators that will be supplied in the search result
Engine
Vehicle
Plate
There’s a couple of important points to note:
The PPSR does not store or maintain this data – the PPSR pulls this data back from NEVDIS for each transaction
If the vehicle is not recorded as stolen – this means there is no NEVDIS data to indicate the vehicle has been stolen
AND NEVDIS data will only be returned if the vehicle has been road registered – if not, there wont be any NEVDIS stolen data supplied
Note:
If the search says ‘no NEVDIS data is returned for the serial number you entered’ that means that the serial number, VIN or chassis number is NOT recorded on NEVDIS – which might mean the vehicle has never or not recently been registered

9. Written-Off Vehicle Register (WOVR) data
Example:
NEVDIS Written-off Vehicle Notification:
Written off vehicle data (known simply as the WOVR data)
Indicates if the vehicle is a statutory write-off or a repairable write-off
(A statutory write-off will not be re-registered again while a repairable write-off may be repaired for re-registration)
WOVR data can be broken down into three parts:
Incident type
Damage location and
Damage severity
The code is displayed and then decoded in the square brackets that follow
There has already been a lot of work done to help improve written off data that is provided for Motor Vehicles.
It has had fantastic feedback from users and industry bodies.

10. H08B [Hail | Roof | Light panel]
Example:
NEVDIS Written-off Vehicle Notification:
WA, 01 Sep 2010,
H08B [Hail | Roof | Light panel]
Other incident types include
Dismantled – legitimate removal of components for use as parts
Fire
Hail
Impact – collision of some type
Malicious/ vandalism / stripped –intentional damage
Water – damage caused by storm, river or flood

11. H08B [Hail | Roof | Light panel]
Example:
NEVDIS Written-off Vehicle Notification:
WA, 01 Sep 2010,
H08B [Hail | Roof | Light panel]
The middle code shows the damage location – which links to that area of the MV, campervan/ trailer or motor bike
Full damage location can be located at:

12. H08B [Hail | Roof | Light panel]
Example:
NEVDIS Written-off Vehicle Notification:
WA, 01 Sep 2010,
H08B [Hail | Roof | Light panel]
Finally – the 3rd code reveals the severity of the damage – ranging from heavy panel through to minor smoke damage

13. Leveraging strategic partnerships to broaden reach
Consumer partnerships
PPSR Consumer branding to target car searches
Technology partnerships
Support for innovators
Leveraging strategic partnerships
Awareness of the PPSR remains an ongoing challenge
While the large end of town are aware of the PPSR as it is a key part of their business, it is the smaller businesses who are missing out on the many benefits and protections of the PPSR.
Since 2013 we’ve been rolling out our information multiplier approach targeting small business
We’ve been working collaboratively with peak bodies and industry associations (and directly with advisors) to identify and leverage their channels – to maximise the reach and effectiveness of our messaging
This strategy has been very successful – we’ve distributed more than 1 million pieces of information – ranging from flyers, brochures, case studies and booklets through to short videos – all of these resources are available for free on our website
With this approach working well, we’re now turning our focus to consumers – and providing the NEVDIS MV ‘stolen’ data is valuable component of our consumer protection messaging
We know people aren’t searching
For example – the MTA in SA recently conducted some market research on car sales – which they’ve kindly given us permission to share:
In SA alone there were around 340,000 MV transactions last year
30,000 MV transactions per month
new car sales
24,000 used car sales
Approx. 50% through licensed dealer network – these buyers are protected through Australian Consumer laws
So the other 50% - or 6,000 cars are sold privately - Approx. 5% of private buyers conduct a search
So how are we addressing it these low search rates?
Harnessing our consumer/information partnerships will be vital – these groups are key information channels who can help us tap into the broader consumer market to help increase awareness
We’ve been collaborating with Government and Industry and will now building on these networks to help us to target consumers
For example we have ongoing liaison with:
National Motor Vehicle Theft Reduction Council
Police
Consumer Affairs
MTAs
ASIC (eg MoneySmart – car buying info/apps)
ATO
And I’ll show you some examples of how this can work in a moment
Our technology partners are also key to helping us – enabling buyers to interact with the PPSR without them having to take additional steps to access the PPSR data
Some examples include:
Online marketplaces – seamlessly link buyers with important data through motor vehicle history checks.
Many of these sites offer additional information or services –
like odometer checks, buy-back insurance, safety and emission ratings
Dealer management systems – integrated business solutions for the automotive industry
These integrated dealer management systems seamlessly link to the PPSR as part of their inventory and invoicing functions
Motor Vehicle pre-purchase checks – having PPSR data provided as part of that service …
We acknowledge that providing support to enable these tech savvy entrepreneurs to flourish is key

14. Consumer partnerships
Here’s an excellent example from ACT Police who recently published this meme in their facebook post
We’re looking to leverage our relationship with these types of organisations that already have active social media campaigns underway

15. Consumer and Business Services SA
We will continue to partner with industry associations and government agencies
Like this example in SA – where the MTA worked collaboratively with the newly formed Department of Consumer and Business services to deliver a PPSR awareness raising campaign
They developed flyers and videos to help spread the word
Their short video was viewed over 75,000 and distributed 30,000 flyers through their member network
This type of targeted promotion through their existing channels is invaluable in help us to reach the consumer marketplace

16. Consumer information
We are now focussed on developing targeted content for consumers
We’ve worked with the BIA to develop a boat flyer – which we will distributing at all boat shows across Australia
One of our initial targets is young tradies who are buying work utes and valuable second hand tools
We’ve been working with the MBA to understand how we can connect with apprentices and tradies and we’ll seek their support for distribution
We’re also looking to target school leavers buying their first car
We see the RTAs as playing a key role here
Driver education training schools
RAA/RACV
TAFEs, Unis, schools
There’s many avenues that we hope to pursue
We encourage you to reach out if you have markets you would like us to focus on
We’d be happy to develop tailored content to assist you to raise awareness to your members and clients

17. Technology for the future
Human centred design
Simplify
Value add
Data validation
The third element of our strategy focuses on Technology for the Future
As a fully digitised registry we are solely reliant on technology – and most of our solutions will involve Technology.
We’re aligning with the Government's digital service standards – using human centred design principles to continually improve and simplify the register
We’re continually looking at ways to Value add – what other information could we provide to help consumers?
For example –as a result of the recent Takata airbag recall – several peak bodies in the automotive sector have flagged that adding ‘recall data’ to the PPSR search result would benefit consumer
We can also see how this information would be of real value to consumers so we’re talking with other government departments to see if this is MV information that could be provided in the NEVDIS data PPSR search result
We also continue to work with other Government bodies to investigate options to improve data validation on our services.
Eg. We’re investigating the possibility of using ‘Plate to VIN technology’ to help buyers find their car’s VIN by simply entering their Rego Plates
We’re also looking at other validation tools to ensure the VIN someone enters is correct?

18. Establishing ourselves as a trusted authority
Compliance
Contingency management
The fourth and final element of our strategy focuses on our role as establishing ourselves as a trusted authority
…so stakeholders feel secure in the fact that we support and maintain the system – and its data – in a manner which serves industry and the community.
We see there’s two facets to achieving this…
Compliance
Generally when considering compliance, people think of regulatory compliance but we need to ensure that all of the activities that surround/support the PPSR are working together cohesively – including:
security, continuity, viability and integrity of the PPSR.
The different areas of focus that we’ve identified as part of this work are:
Branding – users need certainty that the data they are being provided – even if it’s through a third party – is indeed PPSR data.
Data Integrity – the integrity of the data is critical to the success of secured lending and requires constant focus.
Protective Security – the nature of the data stored on the PPSR means that security controls are required to ensure confidentially, integrity and availability of the register. There are measures that AFSA needs to take, but also, people transacting on the register need to ensure their systems adequately support our system security.
System availability – the Registrar is responsible for establishing and maintaining an operational register, and stakeholders have made it very clear that it is an integral part of the business processes and would cause significant disruption if it was unavailable for extended periods of time.
Economic viability – there are two parts to this – we operate under a cost recovered pricing arrangement so we need to ensure that we meet obligations and expectations of the public. There is also our payment systems and processes, and requirements for AFSA and users to meet.
Legislation – ensuring everyone (users and the Registrar) are meeting their obligations.
Contingency Management
As the only publicly available source for this data, it is essential that we have good practices in place to ensure that we are able to continue to deliver services to the community.
This involves:
Technology solution that supports high availability and no data loss;
Business Continuity planning and Disaster recovery testing; and
Having Contingency management practices in place – so that if anything ever does go wrong, we are able to manage appropriately and ensure our stakeholders and users have confidence in our management of the situation.

19. In closing – it’s clear the PPSR plays a key role in communicating stolen data to potential buyers
As I’ve outlined, we’re are all in this together, so lets find ways to collaborate and provide improved services to the community to help tap into the benefits the PPSR
Data accuracy and Timeliness is key – we need your support to ensure we’re providing the most up-to-date and accurate data…
Awareness raising is key – we’re keen to find ways that we work together – do you have opportunities that can help promote the benefits of using the register – if so, we need your help to get the word out…
Please come and speak with me after the session – or feel free to me, as I’d welcome the opportunity to hear your thoughts.