The Pawnbrokers and Second-Hand Dealers Act 1996 (the Act) aims to reduce the trade in stolen goods by providing a licensing regime with record keeping and proof of identity requirements.

It also aims to constrain the exercise of market power in respect of the provision of pawnbroking services and to provide a mechanism to facilitate the return of stolen property to rightful owners quickly and equitably

Persons who carry on the businesses of pawnbroking or buying or selling second-hand goods which are prescribed in the Regulation are required to be licensed. The second-hand goods that are prescribed in the Regulation are those which are considered to be at high risk of theft.

Pawnbroker and Second-hand Dealer Licences are issued in the following classes:

1) Pawnbroker
2) Pawnbroker & Second-hand Dealer
3) Second-hand Dealer