{"id":"F2021L00023","name":"ASIC Corporations (AFCA Regulatory Requirement) Instrument 2021/0002","slug":"asic-corporations-afca-regulatory-requirement-instrument-2021-0002","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440742,"registerId":"F2021L00023-fast-fetch-1775956273048","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (AFCA Regulatory Requirement) Instrument 2021/0002","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 Regulatory Requirement) Instrument 2021/0002\n\nI, Sarah Edmondson, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate: 5 January 2021\n\n \n\nSarah Edmondson\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc60672804)\n\n[1 Name of legislative instrument](#_Toc60672805)\n\n[2 Commencement](#_Toc60672806)\n\n[3 Authority](#_Toc60672807)\n\n[4 Definitions](#_Toc60672808)\n\n[Part 2— Regulatory requirement](#_Toc60672809)\n\n[5 Requirement to amend scheme rules](#_Toc60672810)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (AFCA Regulatory Requirement) Instrument 2021/0002.\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(b) 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\nPart 2— Regulatory requirement\n\n5 Requirement to amend scheme rules\n\n (1) AFCA is required to amend the scheme rules on or before 15 January 2021, without consultation, to:\n\n(a) in the appropriate place in rule E.1.1, insert:\n\n“Representative means any person or entity for whose conduct a Financial Firm is or may be liable, including but not limited to a representative within the meaning of the Corporations Act, and a credit representative within the meaning of the National Consumer Credit Protection Act 2009.” and\n\n(b)  omit paragraph 4 of the definition of Financial Firm in rule E.1.1 and substitute:\n\n \n\n“4. For the purposes of rule B.2, A.7.1, A.7.2 and A.7.6 in relation to a complaint other than a Superannuation Complaint, “Financial Firm” also includes any employee, agent or contractor of the Financial Firm, any Representative of the Financial Firm regardless of whether the Representative’s conduct is within or without authority, and without limiting the foregoing, any other person who has actual, ostensible, apparent or usual authority to act on behalf of the Financial Firm or authority to act by necessity in relation to a financial service.”\n\nNote 1: 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","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: requiring specific amendments to AFCA's scheme rules regarding the definition of who can be complained against. There is no scope creep — it does exactly what it says on the tin and nothing more."},"complexity_factors":["Very short instrument — only 5 sections across 2 Parts","Only 4 defined terms in the interpretation section","Single operative provision (section 5) with straightforward directive","No nested exceptions or complex conditional logic","Minimal cross-referencing — only references to specific rule numbers in the AFCA scheme rules and one Corporations Act provision","Clear, specific amendments with quoted text to be inserted"],"plain_english_summary":"ASIC has ordered AFCA to urgently amend its internal rules by 15 January 2021 so consumers can lodge complaints not only against financial firms but also against employees, agents, representatives and those who appear to have authority to act for a firm. \n\nThe change affects AFCA, financial firms (and their advisers/representatives) and consumers by closing a gap that could block redress where a consumer reasonably believed someone was acting for a firm, even if formal authority was absent."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument widens AFCA's practical jurisdiction by treating complaints about employees, agents, contractors and any \"Representative\" (including those acting without authority) as complaints against the Financial Firm for specified rules, except for Superannuation Complaints. It mandates these rule changes by 15 January 2021 without consultation while preserving ASIC's statutory approval role for material scheme changes (s1051(5)(b))."},"complexity_factors":["Broad legal terminology introduced (\"Representative\" and phrases like \"actual, ostensible, apparent or usual authority\") increases interpretive uncertainty (instrument, rule E.1.1, para 4).","Cross-references to multiple AFCA rules (B.2, A.7.1, A.7.2, A.7.6) enlarge operational scope and require coordinated drafting.","Exclusion scope: amendment applies to complaints other than Superannuation Complaints, creating differential rules by complaint type (instrument, rule E.1.1 para 4).","No consultation and short compliance deadline (amend on or before 15 January 2021) compresses implementation time and review (instrument, para 5(1)).","Interaction with external statutes (Corporations Act and National Consumer Credit Protection Act 2009) creates overlap and potential conflicts when determining liability of Representatives (definition insertion).","Dual oversight: ASIC still must approve material changes under s1051(5)(b), creating sequential compliance and approval steps (note 1).","Potential operational and contractual adjustments for firms to manage increased complaint exposure and indemnity/insurance implications."],"plain_english_summary":"This instrument directs AFCA to amend its scheme rules by 15 January 2021 (without consultation) to add a definition of “Representative” and to expand the meaning of “Financial Firm” so complaints about employees, agents, contractors or persons with actual or ostensible authority are treated as complaints against the firm. It increases firms’ complaint exposure and compliance obligations. ASIC approval of material scheme changes remains required under s1051(5)(b) of the Corporations Act."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002","history":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002/history","analysis":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002/analysis","conflicts":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002/conflicts","importantCases":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002/important-cases","documents":"/api/acts/asic-corporations-afca-regulatory-requirement-instrument-2021-0002/documents"}}