{"id":"F2016L01183","name":"ASIC Corporations (Client money - Cash common funds) Instrument 2016/671","slug":"asic-corporations-client-money-cash-common-funds-instrument-2016-671","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438888,"registerId":"F2016L01183-fast-fetch-1775955124231","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Client money - Cash common funds) Instrument 2016/671","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 (Client money - Cash common funds) Instrument 2016/671\n\nI, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\nDate 14 July 2016\n\n \n\n \n\nStephen Yen\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc456273786)\n\n[1 Name of legislative instrument](#_Toc456273787)\n\n[2 Commencement](#_Toc456273788)\n\n[3 Authority](#_Toc456273789)\n\n[4 Definitions](#_Toc456273790)\n\n[Part 2 Declaration](#_Toc456273791)\n\n[5 Section 981B modification - common funds that are registered schemes](#_Toc456273792)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Client money - Cash common funds) Instrument 2016/671.\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 subsection 992B(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\ncommon fund has the meaning given by subsection 601SCA(2) of the Act.\n\n \n\nPart 2 Declaration\n\n5  Section 981B modification - common funds that are registered schemes\n\n(1) Part 7.8 of the Act applies in relation to an Australian financial services licensee as if section 981B were modified or varied by, after subparagraph 981B(1)(a)(i) inserting:\n\n“(ia) with a licensed trustee company and relates to a common fund that is a registered scheme and which only invests in one or more of the following and only to the extent authorised by the constitution of the scheme:\n\n1.         fixed interest securities;\n2.          negotiable instruments; or”.\n","sortOrder":0}],"analysis":{"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"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: expanding the permitted holders of client money to include licensed trustee companies for specific types of common funds. There is no scope creep; it does one thing and does it narrowly."},"complexity_factors":["Very short instrument — only 5 sections and 2 substantive parts","Only 2 defined terms ('Act' and 'common fund'), with 'common fund' referencing an external definition in the Corporations Act","Single operative provision (section 5) that inserts one subparagraph into existing legislation","No nested exceptions or conditional logic beyond the three bullet-point requirements in the inserted text","No cross-references to other legislative instruments or complex transitional provisions"],"plain_english_summary":"This instrument lets Australian financial services licensees deposit client money with licensed trustee companies—but only when the money goes into a common fund that’s a registered scheme, invests solely in fixed‑interest securities or negotiable instruments, and stays within its constitution’s investment limits.  \n\nIt affects licensees, trustee companies running such funds, and investors, giving limited flexibility to use low‑risk, highly regulated common funds instead of traditional bank account arrangements."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"Yes. The instrument expressly modifies the operation of section 981B of the Corporations Act for a specific subset of common funds: those that are registered schemes held with a licensed trustee company and which invest only in fixed interest securities or negotiable instruments, and then only to the extent authorised by the scheme constitution. This narrows/varies the standard application of Part 7.8 to that defined category (see Instrument s5)."},"complexity_factors":["Narrow single‑point modification to an Act provision (inserts text into s981B) (see Instrument s5).","Relies on external defined terms and provisions in the Corporations Act (eg. Part 7.8, s981B, definition of common fund in s601SCA) (see Instrument ss3–4 and s5).","Conditions require factual verification: licensed trustee company status and that investments are only fixed interest securities or negotiable instruments (compliance burden on licensees/trustees) (see Instrument s5).","Interaction with scheme constitutions: effect limited to what the constitution authorises, so lawyers must review constitutions to determine applicability (see Instrument s5).","Made under delegated authority (subsection 992B(1)) rather than primary legislation—requires attention to scope of delegation (see Instrument s3).","Commencement timing: operative from day after registration, so operational changes may be immediate (see Instrument s2)."],"plain_english_summary":"This instrument changes how the Corporations Act treats client money for certain ‘‘common funds’’ that are registered schemes. It treats Part 7.8 as if section 981B is modified where the fund is held with a licensed trustee company and invests only in fixed‑interest securities or negotiable instruments, and only to the extent the scheme constitution allows. Affected parties are Australian financial services licensees and licensed trustee companies, who must check trustee status, investment types and the scheme constitution to meet client‑money rules."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671","history":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671/history","analysis":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671/analysis","conflicts":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671/conflicts","importantCases":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671/important-cases","documents":"/api/acts/asic-corporations-client-money-cash-common-funds-instrument-2016-671/documents"}}