{"id":"F2017L00898","name":"ASIC Corporations (Credit Union Member Shares) Instrument 2017/616","slug":"asic-corporations-credit-union-member-shares-instrument-2017-616","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439258,"registerId":"F2017L00898-fast-fetch-1775955351514","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Credit Union Member Shares) Instrument 2017/616","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 20.2\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Corporations (Credit Union Member Shares) Instrument 2017/616\n\nI, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\nDate: 5 July 2017\n\n \n\n \n\n \n\nStephen Yen\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc487043356)\n\n[1 Name of legislative instrument](#_Toc487043357)\n\n[2 Commencement](#_Toc487043358)\n\n[3 Authority](#_Toc487043359)\n\n[4 Definitions](#_Toc487043360)\n\n[Part 2—Exemptions](#_Toc487043361)\n\n[5 Exemptions from the requirement to hold an Australian financial services licence and financial services disclosure requirements](#_Toc487043362)\n\n[6 Requirement to confirm member share transactions](#_Toc487043363)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Credit Union Member Shares) Instrument 2017/616.\n\n2 Commencement\n\nThis instrument commences on the same day as the ASIC Corporations (Repeal) Instrument 2017/621.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.comlaw.gov.au).\n\n3 Authority\n\nThis instrument is made under paragraphs 926A(2)(a), 951B(1)(a) and 1020F(1)(a) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nEligible Company means a company that:\n\n(a)     is registered under clause 3 of Schedule 4 to the Act; and\n\n(b)       on 1 July 1999 was permitted to use the expression ‘credit union’, ‘credit society’, or ‘credit co-operative’ under section 66 of the Banking Act 1959.\n\nmember share has the meaning given in regulation 12.8.03 of the Corporations Regulations 2001.\n\nPart 2—Exemptions\n\n5        Exemptions from the requirement to hold an Australian financial services licence and financial services disclosure requirements\n\nServices covered by exemption\n\n(1) An Eligible Company does not have to comply with subsection 911A(1) of the Act to the extent it requires the Eligible Company to hold an Australian financial services licence for the provision of financial product advice to a member or prospective member of the Eligible Company in relation to the issue of member shares.\n\n(2) An Eligible Company providing financial services by providing financial product advice to a member or prospective member of the Eligible Company in relation to the issue of member shares does not have to comply with Divisions 2, 3 and 4 of Part 7.7 of the Act in relation to those services.\n\nWhere exemptions apply\n\n(3) The exemptions in subsections (1) and (2) apply where the aggregate amount paid or to be paid by the member or prospective member for:\n\n(a) all member shares then held by the member; and\n\n(b) all member shares proposed for issue to the member or prospective member,\n\n does not exceed $50.  \n\n6 Requirement to confirm member share transactions\n\nExemption\n\n(1)  An Eligible Company does not have to comply with section 1017F of the Act in relation to the confirmation of a transaction that is:\n\n(a) an issue of member shares; or\n\n(b) the redemption of member shares.\n\nCondition\n\n(2) An Eligible Company which relies on the exemption in subsection (1) must include in each periodic statement it gives under section 1017D of the Act to a holder of member shares:\n\n(a)  the number of shares held by the holder; or\n\n(b)  the amount paid by the holder for the member shares.\n\nNote: Section 1017D relevantly requires an Eligible Company to give periodic statements to holders of deposit products issued by the Company.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"No. The instrument creates narrowly confined exemptions for historically defined credit unions and a $50 aggregate holding threshold; it does not expand coverage beyond those eligibility limits or alter other Corporations Act obligations outside the stated exceptions."},"complexity_factors":["Narrow, targeted scope limited to 'Eligible Company' defined by registration under Schedule 4 and a historical name-use test (definition in s4).","Monetary threshold is very small ($50) which creates a simple bright-line eligibility rule (s5(3)).","Relies on cross-references to multiple Corporations Act provisions (e.g. ss 911A, 1017D, 1017F) requiring readers to consult the Act for full effect (ss3, 5, 6).","Two distinct exemption types (licence/disclosure and confirmation) with a compliance condition linking to periodic statement content (s6(1)–(2)).","Delegated instrument form and commencement linked to another instrument may affect timing and administrative sequencing (s2)."],"plain_english_summary":"This instrument exempts certain credit unions (Eligible Companies) from needing an Australian financial services licence and from some disclosure and confirmation duties when advising members about or issuing member shares, but only where a member’s total holding plus proposed issue does not exceed $50. It also removes the obligation to send separate transaction confirmations for member share issues or redemptions provided the periodic statement shows the number of shares or amount paid."},"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 scoped to its original purpose: providing targeted relief for pre-1999 credit unions dealing with nominal member share transactions. The $50 threshold and specific eligibility criteria (registration under Schedule 4, pre-1999 naming rights) maintain the narrow focus on this particular class of financial institution and product."},"complexity_factors":["Very short instrument (only 6 sections)","Only 4 defined terms in the interpretation section","Single, clear monetary threshold ($50) for exemption application","No nested exceptions or complex conditional logic","Straightforward cross-references to the Corporations Act (sections 911A, 1017F, etc.) without recursive definitions","Simple structure: preliminary matters, then two discrete exemptions with basic conditions"],"plain_english_summary":"This ASIC instrument lets certain old-style credit unions — those using names like “credit union,” “credit society” or “credit co-operative” before 1 July 1999 — give members advice about buying small “member shares” without holding an Australian financial services licence and without complying with usual disclosure or immediate transaction confirmation rules.  \n\nIt applies only where a member’s total payment for member shares is $50 or less, reducing compliance burden for nominal membership stakes."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616","history":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616/history","analysis":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616/analysis","conflicts":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616/conflicts","importantCases":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616/important-cases","documents":"/api/acts/asic-corporations-credit-union-member-shares-instrument-2017-616/documents"}}