{"id":"F2018L01466","name":"ASIC Corporations and Credit (Amendment) Instrument 2018/937","slug":"asic-corporations-and-credit-amendment-instrument-2018-937","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439805,"registerId":"F2018L01466-fast-fetch-1775955686749","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations and Credit (Amendment) Instrument 2018/937","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.jpeg)\n\nASIC Corporations and Credit (Amendment) Instrument 2018/937\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 24 October 2018\n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc528132518)\n\n[1 Name of legislative instrument](#_Toc528132519)\n\n[2 Commencement](#_Toc528132520)\n\n[3 Authority](#_Toc528132521)\n\n[4 Schedules](#_Toc528132522)\n\n[5 Application of amendments](#_Toc528132523)\n\n[Schedule 1—Amendments](#_Toc528132524)\n\n[ASIC Class Order [CO 10/250]](#_Toc528132525)\n\n[ASIC Class Order [CO 10/381]](#_Toc528132526)\n\n[ASIC Class Order [CO 10/517]](#_Toc528132527)\n\n[ASIC Corporations (Concept Validation Licensing Exemption) Instrument 2016/1175](#_Toc528132528)\n\n[ASIC Credit (Concept Validation Licensing Exemption) Instrument 2016/1176](#_Toc528132529)\n\n[Schedule 2—Further Amendments](#_Toc528132530)\n\n[ASIC Class Order [CO 10/250]](#_Toc528132531)\n\n[ASIC Class Order [CO 10/381]](#_Toc528132532)\n\n[ASIC Class Order [CO 10/517]](#_Toc528132533)\n\n[ASIC Corporations (Concept Validation Licensing Exemption) Instrument 2016/1175](#_Toc528132534)\n\n[ASIC Credit (Concept Validation Licensing Exemption) Instrument 2016/1176](#_Toc528132535)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations and Credit (Amendment) Instrument 2018/937.\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:\n\n(a) under subsection 926A(2) of the Corporations Act 2001;\n\n(b) under subsection 109(3) of the National Consumer Credit Protection Act 2009;\n\n(c) under item 41 of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009;\n\n(d) for the purposes of subparagraph 47(1)(h)(i) of the National Consumer Credit Protection Act 2009;\n\n(e) for the purposes of subparagraph 47(1)(e)(i) as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010.\n\n4 Schedules\n\nEach instrument specified in a Schedule to this instrument is amended as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n5 Application of amendments\n\n(a) The amendments made by Schedule 1 to this instrument apply on and after 1 November 2018.\n\n(b) The amendments made by Schedule 2 to this instrument apply on and after the day, under item 72 of Schedule 1 to the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018, on and after which the amendments made by Part 5 of Schedule 1 to that Act apply.\n\nSchedule 1—Amendments\n\nASIC Class Order [CO 10/250]\n\n1 Subparagraph 4(d)\n\nOmit “external dispute resolution scheme of which the licensee is a member.”, substitute “approved external dispute resolution scheme of which the licensee is a member and the AFCA scheme.”.\n\n2 Paragraph 5 (definition of external dispute resolution scheme)\n\nRepeal the definition.\n\nASIC Class Order [CO 10/381]\n\n3 Paragraph 4 (after notional paragraph 19A(2)(g))\n\nInsert the following notional paragraph:\n\n(ga) whether the lender is a member of the AFCA scheme;\n\nASIC Class Order [CO 10/517]\n\n4 Subparagraph 4(d)\n\nAfter “approved external dispute resolution scheme”, insert “or the AFCA scheme”.\n\nASIC Corporations (Concept Validation Licensing Exemption) Instrument 2016/1175\n\n5 Section 4 (definition of approved external dispute resolution scheme)\n\nOmit the definition, substitute:\n\napproved external dispute resolution scheme, in relation to an eligible person, means an external dispute resolution scheme approved by ASIC for the purposes of subparagraph 912A(2)(b)(i) of the Act that covers complaints against the person made by retail clients in connection with the provision of testing services.\n\n6 Paragraph 7(3)(b)\n\nOmit all the words after “approved external dispute resolution scheme”, substitute “and the AFCA scheme; and”.\n\n \n\n7 Subsection 7(4)\n\nAfter “approved external dispute resolution scheme”, insert “and the AFCA scheme”.\n\nASIC Credit (Concept Validation Licensing Exemption) Instrument 2016/1176\n\n8 Paragraph 7(3)(b)\n\nOmit “approved external dispute resolution scheme;”, substitute “approved external dispute resolution scheme and the AFCA scheme;”.\n\n9 Subsection 7(4)\n\nAfter “approved external dispute resolution scheme”, insert “and the AFCA scheme”.\n\nSchedule 2—Further Amendments\n\nASIC Class Order [CO 10/250]\n\n1 Subparagraph 4(d)\n\nOmit “an approved external dispute resolution scheme of which the licensee is a member and”.\n\nASIC Class Order [CO 10/381]\n\n2 Paragraph 4 (notional paragraph 19A(2)(g))\n\nOmit the notional paragraph.\n\nASIC Class Order [CO 10/517]\n\n3 Subparagraph 4(d)\n\nOmit “an approved external dispute resolution scheme or”.\n\nASIC Corporations (Concept Validation Licensing Exemption) Instrument 2016/1175\n\n4 Section 4 (definition of approved external dispute resolution scheme)\n\nRepeal the definition.\n\n5 Paragraph 7(3)(b)\n\nOmit “an approved external dispute resolution scheme and”.\n\n6 Subsection 7(4)\n\nOmit “an approved external dispute resolution scheme and”.\n\nASIC Credit (Concept Validation Licensing Exemption) Instrument 2016/1176\n\n7 Paragraph 7(3)(b)\n\nOmit “an approved external dispute resolution scheme and”.\n\n8 Paragraph 7(3)(b) (Note)\n\nRepeal the note.\n\n \n\n9 Subsection 7(4)\n\nOmit “an approved external dispute resolution scheme and”.\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument maintains its original narrow purpose: updating dispute resolution references to accommodate the AFCA transition. It does not expand beyond this technical amendment function."},"complexity_factors":["Short, targeted amendment instrument (9 items in Schedule 1, 9 items in Schedule 2)","Simple textual substitutions — adding or removing specific phrases like 'and the AFCA scheme'","No new defined terms introduced; only modifies existing definitions in target instruments","Two-phase implementation (Schedule 1 then Schedule 2) creates conditional timing but logic is straightforward","Heavy cross-referencing to external legislation (Treasury Laws Amendment Act 2018) for commencement timing, but this is standard for transitional amendments","No nested exceptions or conditional logic within the instrument itself"],"plain_english_summary":"This instrument updates older ASIC rules to recognise the new Australian Financial Complaints Authority (AFCA) as the single external dispute-resolution body for banks, insurers, advisers, credit providers and intermediaries. It requires firms to inform clients about AFCA and treats AFCA membership as meeting dispute‑resolution obligations.\n\nThat change consolidates multiple schemes into one, making it clearer for consumers how to complain and ensuring businesses comply during and after the transition."},"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"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument changes the scope of who counts as an acceptable dispute‑resolution arrangement by explicitly adding the AFCA scheme alongside ASIC‑approved EDR schemes for affected class orders and exemptions (Schedule 1). It then provides further amendments (Schedule 2) that remove or adjust those explicit references upon a later commencement tied to AFCA's establishment (s5). Net effect: transitional extension to recognise AFCA, followed by staged textual clean‑up that alters operative references to EDR arrangements."},"complexity_factors":["Multiple instruments amended simultaneously (three class orders plus two licensing‑exemption instruments), increasing cross‑reference complexity (Schedules 1–2).","Staged and conditional commencement: Schedule 1 amendments apply from 1 Nov 2018 while Schedule 2 amendments apply on a later day tied to commencement under another Act (s5(a)–(b)).","Insertion and later removal of textual references to the AFCA scheme creates transitional overlap and potential duplication between 'approved external dispute resolution scheme' and 'AFCA scheme' (Schedule 1 items 1–9; Schedule 2 items 1–9).","Substitution and repeal of definitions (e.g. replacing the definition of 'approved external dispute resolution scheme' in Schedule 1 item 5, then repealing in Schedule 2 item 4) requires careful reading to determine the operative definition at different times.","Reliance on external approvals and powers: instrument is made under multiple statutory heads (Corporations Act s926A(2); National Consumer Credit Protection Act s109(3); and related transitional provisions) which affects administrative discretion (s3).","Taut textual amendments (inserting 'and the AFCA scheme' in multiple places) create modest drafting risk for interpretation and implementation by firms and regulators."],"plain_english_summary":"This instrument amends several ASIC class orders and two concept‑validation licensing‑exemption instruments to recognise the Australian Financial Complaints Authority (AFCA) alongside ASIC‑approved external dispute resolution (EDR) schemes, and then stages further changes to those references (see s5; Schedules 1–2). It affects licensed firms and \"eligible persons\" who must belong to an EDR scheme: they bear membership and compliance costs, ASIC decides scheme approvals (s3; Schedule 1 item 5), and firms must adjust membership and reporting during the transitional period."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937","history":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937/history","analysis":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937/analysis","conflicts":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937/conflicts","importantCases":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937/important-cases","documents":"/api/acts/asic-corporations-and-credit-amendment-instrument-2018-937/documents"}}