{"id":"F2020L00560","name":"ASIC Corporations (AFCA Regulatory Requirement) Instrument 2020/0433","slug":"asic-corporations-afca-regulatory-requirement-instrument-2020-0433","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440477,"registerId":"F2020L00560-fast-fetch-1775956082629","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (AFCA Regulatory Requirement) Instrument 2020/0433","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (AFCA Scheme Regulatory Requirement) Instrument 2020/0433\n\nI, Gregory Kirk, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 7 May 2020\n\n \n\nGregory Kirk\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc39570222)\n\n[1 Name of legislative instrument](#_Toc39570223)\n\n[2 Commencement](#_Toc39570224)\n\n[3 Authority](#_Toc39570225)\n\n[4 Definitions](#_Toc39570226)\n\n[Part 2—Regulatory requirement](#_Toc39570227)\n\n[5 Requirement to amend scheme rules](#_Toc39570228)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (AFCA Regulatory Requirement) Instrument 2020/0433.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under paragraph 1052A(a) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nAFCA  means the operator of the AFCA scheme.\n\nAFCA scheme means the external dispute resolution scheme for which an authorisation under Part 7.10A of the Act is in force.\n\nscheme rules means the Australian Financial Complaints Authority (AFCA) Complaint Resolution Scheme Rules.\n\n \n\nPart 2—Regulatory requirement\n\n5 Requirement to amend scheme rules\n\n(1) AFCA is required to ensure it complies with the conditions of sections 10 and 11 of the AFCA Scheme Authorisation 2018 by amending the scheme rules on or before 13 May 2020, without consultation, to include provisions consistent with subsections 10(2), (3), (4) (5) and (6) and subsections 11(2), (3), (4) and (5) of the AFCA Scheme Authorisation 2018.\n\nNote 1: The AFCA Scheme Authorisation 2018 is registered as a notifiable instrument on the Federal Register of Legislation. The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au)\n\nNote 2: This requirement does not affect the requirement in s1051(5)(b) of the Act that ASIC approve material changes to the AFCA scheme.\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument does not alter AFCA's authorised powers or the content of the AFCA Scheme Authorisation 2018; it compels AFCA to amend its scheme rules to align with existing authorisation conditions by a fixed date and without consultation (s5(1)). The change is procedural and timing-focused rather than a substantive expansion or contraction of the authorisation."},"complexity_factors":["Cross-reference dependence on the AFCA Scheme Authorisation 2018—requires reading and aligning with multiple subsections outside this instrument (s5(1), Note 1).","Mandatory short deadline for rule amendments (13 May 2020) creates operational urgency (s5(1)).","Express prohibition of consultation for the required amendments increases legal and stakeholder risk (s5(1)).","Instrument is a delegated regulatory requirement made under paragraph 1052A(a) of the Corporations Act—legal formalities and limits of delegation matter (s3).","Interaction with existing ASIC approval requirement for material changes (s1051(5)(b)) is noted and may require coordination (s5(1), Note 2).","Phrase 'consistent with' covering multiple subsections invites legal interpretation about the necessary content and scope of amendments (s5(1)).","Commencement rule (takes effect the day after registration) shortens implementation lead time (s2)."],"plain_english_summary":"This instrument directs the Australian Financial Complaints Authority (AFCA) to amend its scheme rules to include specific provisions consistent with parts of the AFCA Scheme Authorisation 2018, without consultation, by 13 May 2020 (s5(1)). Made by an ASIC delegate under the Corporations Act and commencing the day after registration (ss3–4, s2), it places the immediate compliance and timing burden on AFCA and makes those rule changes binding on participants in the AFCA scheme."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly scoped to its original purpose: compelling AFCA to incorporate specific pre-existing regulatory conditions into its scheme rules by a hard deadline. There is no scope creep — it does one thing and one thing only."},"complexity_factors":["Extremely short: only 5 operative sections across 2 Parts","Minimal defined terms: only 4 definitions in section 4","Single substantive provision (section 5) with straightforward directive language","No nested exceptions or conditional logic — just a flat requirement with a deadline","Cross-references are explicit and limited (only to the AFCA Scheme Authorisation 2018 and Corporations Act)","No penalty provisions, enforcement mechanisms, or dispute resolution clauses within the instrument itself"],"plain_english_summary":"ASIC orders AFCA to update its complaint-handling rules by 13 May 2020, mandating specific changes that mirror conditions in the AFCA Scheme Authorisation 2018 and prohibiting any consultation. \n\nThis emergency-style intervention compels AFCA (and thus affects financial consumers) to implement prescribed rule changes immediately, while ASIC notes it still must approve any subsequent \"material changes\" under the Corporations Act."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433","history":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433/history","analysis":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433/analysis","conflicts":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433/conflicts","importantCases":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433/important-cases","documents":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2020-0433/documents"}}