{"id":"F2025L01030","name":"ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2025/520","slug":"asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106765,"registerId":"commonwealth-F2025L01030-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Note: The licensee may give written cons","sectionType":"section","heading":"Note: The licensee may give written consent to the principal distributor to authorise individuals in respect of either a specified individual or a specified class of individuals (the membership of which may change from time to time).”;","content":"Part 2—Declaration\n\n5 Distribution of certain banking and insurance products\n\n(1) Part 7.6 (other than Divisions 4 and 8) of the Act applies in relation to a financial services licensee (licensee) and a person (the distributor) authorised to provide financial services on behalf of the licensee as if provisions of that Part were modified or varied as follows:\n\n    (a) in section 910A, before the definition of qualified tax relevant provider, insert:\n  “product distributor means, in relation to a financial services licensee:\n    (a) a person (the principal distributor), other than an employee of the licensee, who the licensee has authorised in writing to provide financial services on its behalf in relation to:\n      (i) a basic deposit product; or\n      (ii) a risk insurance product; and\n    (b) an individual who has been authorised in writing to provide those financial services on behalf of the licensee where:\n      (i) the authorisation has been provided by a principal distributor (with the written consent of the licensee); and\n      (ii) the principal distributor is not an individual.\n\nNote: The licensee may give written consent to the principal distributor to authorise individuals in respect of either a specified individual or a specified class of individuals (the membership of which may change from time to time).”;\n\n(b) in section 9, in the definition of representative, insert after subparagraph (a)(iii):\n\n      “(iiia) a product distributor of the licensee; or”;\n\n(c) after paragraph 911B(1)(a), insert:\n\n    “(aa) these conditions are satisfied:\n      (i) the principal holds an Australian financial services licence covering the provision of the service; and\n      (ii) the service is dealing in a basic deposit product or risk insurance product; and\n      (iii) the provider is:\n      (A) a product distributor of the principal; or\n      (B) if the service is dealing in a basic deposit product, an employee of a product distributor of the principal;”.\n\nWhere declaration applies\n\n(2) The declaration applies where all of the following are satisfied:\n\n    (a) the distributor is not an authorised representative of the licensee;\n    (b) the financial service provided by the distributor on behalf of the licensee is dealing in any of the following:\n      (i) a basic deposit product;\n      (ii) a general insurance product;\n      (iii) a bundled consumer credit insurance product;\n    (c) the licensee has taken reasonable steps to ensure that, when the distributor provides the financial service to another person (the client) as a retail client:\n      (i) the distributor draws the client’s attention to the availability of a dispute resolution system of the licensee that covers complaints by the client in relation to the financial service and how that system may be accessed; and\n      (ii) if the distributor is dealing in a general insurance product or a bundled consumer credit insurance product, the client is given information in writing about:\n      (A) who the distributor acts for when providing the financial service; and\n\n(B) any remuneration (including commission) or other benefits that the distributor, or an associate of the distributor, may receive in respect of, or that is attributable to, the provision of the financial service.","sortOrder":0},{"sectionNumber":"(b) in section 9, in the definition of r","sectionType":"section","heading":"(b) in section 9, in the definition of representative, insert after subparagraph (a)(iii):","content":"(b) in section 9, in the definition of representative, insert after subparagraph (a)(iii):\n\n      “(iiia) a product distributor of the licensee; or”;","sortOrder":1},{"sectionNumber":"(c) after paragraph 911B(1)(a), insert:","sectionType":"section","heading":"(c) after paragraph 911B(1)(a), insert:","content":"(c) after paragraph 911B(1)(a), insert:\n\n    “(aa) these conditions are satisfied:\n      (i) the principal holds an Australian financial services licence covering the provision of the service; and\n      (ii) the service is dealing in a basic deposit product or risk insurance product; and\n      (iii) the provider is:\n      (A) a product distributor of the principal; or\n      (B) if the service is dealing in a basic deposit product, an employee of a product distributor of the principal;”.\n\nWhere declaration applies\n\n(2) The declaration applies where all of the following are satisfied:\n\n    (a) the distributor is not an authorised representative of the licensee;\n    (b) the financial service provided by the distributor on behalf of the licensee is dealing in any of the following:\n      (i) a basic deposit product;\n      (ii) a general insurance product;\n      (iii) a bundled consumer credit insurance product;\n    (c) the licensee has taken reasonable steps to ensure that, when the distributor provides the financial service to another person (the client) as a retail client:\n      (i) the distributor draws the client’s attention to the availability of a dispute resolution system of the licensee that covers complaints by the client in relation to the financial service and how that system may be accessed; and\n      (ii) if the distributor is dealing in a general insurance product or a bundled consumer credit insurance product, the client is given information in writing about:\n      (A) who the distributor acts for when providing the financial service; and\n\n(B) any remuneration (including commission) or other benefits that the distributor, or an associate of the distributor, may receive in respect of, or that is attributable to, the provision of the financial service.","sortOrder":2}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument appears consistent with its stated purpose of facilitating distribution of basic deposit and general insurance products. The scope is tightly constrained to specific product types (basic deposit products, general insurance, bundled consumer credit insurance) and includes consumer protection conditions. No evidence of scope creep beyond the original regulatory intent."},"complexity_factors":["Multiple defined terms introduced ('product distributor', 'principal distributor') with nested definitions","Conditional application requiring satisfaction of three cumulative conditions in subsection (2)","Cross-references to Part 7.6 of the Corporations Act and specific sections (910A, 9, 911B)","Differential treatment between product types (basic deposit products vs insurance products)","Hierarchical authorisation structure (licensee → principal distributor → individual)","Modification of existing statutory definitions rather than standalone provisions"],"plain_english_summary":"This creates a new \"product distributor\" category allowing banks and insurers to authorise external companies or their authorised individuals to sell basic deposit and general insurance products without making them full authorised representatives under the Corporations Act. Product distributors are treated as the licensee's representatives for liability and compliance.\n\nIt requires licensees to ensure consumer protections—complaint-handling information and, for insurance, disclosure of who the distributor acts for and any commissions—so firms can streamline third‑party distribution while retaining key safeguards."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument expands the reach of Part 7.6 to cover non‑employee principal distributors and individuals authorised by them for basic deposit, general insurance and bundled consumer credit insurance dealings. It makes those distributors subject to representative‑type obligations when they are not authorised representatives, and imposes written authorisation, dispute‑resolution disclosure and insurance remuneration disclosure duties on licensees and distributors (see s 5(1)(a)–(c) and the “Where declaration applies” conditions)."},"complexity_factors":["Introduces a new statutory definition of “product distributor” and layered authorisation: licensee authorises a principal distributor in writing, and a principal (non‑individual) may, with the licensee’s written consent, authorise individuals (s 5(1)(a) insertion to s 910A and accompanying note).","Expands the existing definition of “representative” to include product distributors, creating cross‑reference effects across Part 7.6 (s 5(1)(b) amending s 9).","Adds conditional scope in 911B(1)(aa) tying application to (i) the principal holding an AFS licence, (ii) the service being dealing in a basic deposit or risk insurance product, and (iii) provider status as product distributor or (for basic deposit) an employee of one (s 5(1)(c)).","Applies only where the distributor is not an authorised representative and where the licensee has taken “reasonable steps” to ensure certain conduct — a fact‑sensitive compliance standard that creates enforcement and implementation discretion (Where declaration applies, subparagraphs (2)(a) and (2)(c)(i)).","Prescribes client disclosure obligations specific to general insurance and bundled consumer credit insurance (written information about who the distributor acts for and any remuneration) — operational compliance and record‑keeping burdens (Where declaration applies, subparagraphs (2)(b) and (2)(c)(ii)(A)–(B)).","Interacts with existing Divisions of Part 7.6 (notably excludes Divisions 4 and 8), requiring careful mapping of which duties apply and when.","Drafting repetition and inserted subparagraphs increase the risk of ambiguity about applicability across different product types and distributor relationships."],"plain_english_summary":"This instrument amends Part 7.6 of the Corporations Act so that certain non‑employee distributors — named “product distributors” and individuals authorised by them — are treated as representatives for dealing in basic deposit products, general insurance and bundled consumer credit insurance. Licensees must give written authorisation, take “reasonable steps” to ensure distributors tell retail clients how to access the licensee’s dispute resolution, and (for insurance sales) give written disclosure of who the distributor acts for and any remuneration. It affects licensees, principal distributors, individual distributors and retail clients."},"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-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520","history":"/api/acts/asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520/history","analysis":"/api/acts/asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520/analysis","conflicts":"/api/acts/asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520/conflicts","importantCases":"/api/acts/asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520/important-cases","documents":"/api/acts/asic-corporations-basic-deposit-and-general-insurance-product-distribution-instrument-2025-520/documents"}}