{"id":"F2016L01490","name":"ASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2016/883","slug":"asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438952,"registerId":"F2016L01490-fast-fetch-1775955157337","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2016/883","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: CO 06-682 - DRAFT remake\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2016/883\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate  19 September 2016\n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc462048503)\n\n[1 Name of legislative instrument](#_Toc462048504)\n\n[2 Commencement](#_Toc462048505)\n\n[3 Authority](#_Toc462048506)\n\n[4 Definitions](#_Toc462048507)\n\n[Part 2—Declaration](#_Toc462048508)\n\n[5 Exchange-traded derivatives: Product Disclosure Statements](#_Toc462048509)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Exchange-Traded Derivatives: Multiple Issuers) Instrument 2016/883.\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 1020F(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nRegulations means the Corporations Regulations 2001.\n\nPart 2—Declaration\n\n5 Exchange-traded derivatives: Product Disclosure Statements\n\nPart 7.9 of the Act applies in relation to financial services licensees as if the provisions of that Part were modified or varied as follows:\n\n(a) at the end of Subdivision B of Division 2, add:\n\n“1012L Obligation to give retail client information about intermediary licensee in relation to issue of derivative\n\nWhere a person (the client) is given a Product Disclosure Statement or Short-Form PDS for a derivative that is covered by subsection 1013A(5), the intermediary licensee (within the meaning of subsection 1013A(5)) that is taken to be an issuer of the derivative must ensure that the client is given, in writing, the statements and information that would have been required by subsection 1013D(1) but for subsection 1013D(5) at or before the time when:\n\n(a) the intermediary licensee offers to issue, offers to arrange for the issue of, or makes a recommendation to acquire, the derivative to the client; or\n\n(b) the derivative is issued under such an offer or as a result of such a recommendation;\n\nif at the relevant time, the client has not already been given such statements and information.\n\nNote: The intermediary licensee may be required to give a Financial Services Guide to a person as a retail client. If the intermediary licensee is giving a Financial Services Guide to the client, the information required by this section may be included in the Financial Services Guide.”;\n\n (b) after subsection 1013A(4) insert:\n\n“Exchange-traded derivatives: multiple issuers\n\n(5) A Product Disclosure Statement for a derivative:\n\n(a) that is entered into, or acquired, on a financial market (the relevant market); and\n\n(b)  in relation to which both of the following are, because of subsection 761E(6), taken to be the issuer:\n\n(i) a financial services licensee (the intermediary licensee) who is not a participant in the relevant market; and\n\n(ii) another financial services licensee (the market participant) who is a participant in the relevant market;\n\nmay be a document that has only been prepared by the market participant.\n\n(6) Subsection (5) only applies in relation to an intermediary licensee and a market participant who have entered into a written agreement in relation to the derivative under which the intermediary licensee agrees to take reasonable steps to ensure that a person to whom the intermediary licensee:\n\n(a) offers to issue the derivative; or\n\n(b) offers to arrange for the issue of the derivative; or\n\n(c) makes a recommendation to acquire the derivative;\n\nas a retail client is given:\n\n(d) a document that includes the statements and information referred to in section 1012L; and\n\n(e) a Product Disclosure Statement or Short-Form PDS for the derivative that has been prepared by the market participant.\n\n(7) If a Product Disclosure Statement for the derivative is covered by subsection (5), the market participant is, in this Division, referred to as the responsible person for the derivative.”;\n\n(c) after section 1013D(4) insert:\n\n“Exchange-traded derivatives: multiple issuers\n\n(5) If the Product Disclosure Statement for a derivative is covered by subsection 1013A(5), the Statement does not have to include any statement or information that would not be required by subsection (1) if the derivative to which the Statement relates were only issued by the responsible person for the derivative, provided it includes statements to the effect that:\n\n(a) a person may enter (make an intermediary acquisition) or acquire (make an intermediary acquisition) the derivative to which the Statement relates as a result of an arrangement made by an intermediary licensee (within the meaning of subsection 1013A(5)) or their authorised representative; and\n\n(b) a person who makes an intermediary acquisition may not have any direct contact or relationship with the market participant; and\n\n(c) where a person has made an intermediary acquisition of the derivative:\n\n(i) there may be additional risks associated with holding the derivative; and\n\n(ii) additional fees and costs may apply; and\n\n(iii) additional rights, terms, conditions and obligations may attach to the derivative; and\n\n(iv) the person will have access to a dispute resolution system maintained by the intermediary licensee that covers complaints made by holders of the derivative; and\n\n(d) further information about the matters mentioned in paragraph (c) may be obtained from the intermediary licensee.”;\n\n(d) at the end of section 1013E, insert on a new line:\n\n“If a Product Disclosure Statement for a derivative is covered by subsection 1013A(5), this section is to be applied as if the derivative were only issued by the responsible person for the derivative.”;\n\n(e) after subsection 1017I(2) insert:\n\n“(2A) If the Short-Form PDS:\n\n(a) is for a derivative and is covered by subsection 1013A(5); and\n\n(b) contains for the purposes of paragraph (1)(a) a summary of a Product Disclosure Statement from which any statement or information has been omitted in accordance with subsection 1013D(5);\n\nthe Short-Form PDS must also set out statements to the effect of those referred to in paragraphs 1013D(5)(a) to (d).”.\n\nNote: The Short-Form PDS provisions are set out in regulation 7.9.61AA of the Regulations, and Part 3 of Schedule 10BA to the Regulations.\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":4,"scope_assessment":{"changed":false,"description":"This instrument remains tightly focused on its original purpose: facilitating disclosure for exchange-traded derivatives sold through multiple issuers/intermediaries. It does not expand beyond the specific regulatory relief for PDS requirements in this context."},"complexity_factors":["Multiple nested cross-references to the Corporations Act 2001 (Part 7.9, sections 1012L, 1013A, 1013D, 1013E, 1017I)","Conditional logic requiring written agreements between intermediary licensees and market participants (section 5(b)(6))","Creates parallel disclosure obligations — the PDS can omit certain information, but that same information must be given separately by the intermediary","Introduces defined terms within modifications ('intermediary licensee', 'market participant', 'responsible person', 'relevant market') that only exist within the modified provisions","Modifies existing law through 'as if' modifications rather than direct amendments, requiring readers to mentally reconstruct the amended text"],"plain_english_summary":"This law lets exchange members prepare a single Product Disclosure Statement for exchange-traded derivatives that non‑member intermediaries then sell to retail clients, so intermediaries need not draft their own PDS. Intermediaries must still give clients written information about themselves, and the PDS must warn that an intermediary is involved and disclose possible extra risks, fees and dispute avenues.\n\nIt affects exchange members, non‑member brokers/advisers and retail investors, reducing duplicate paperwork while preserving key investor protections."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument targets exchange‑traded derivatives that, by operation of s.761E(6), are treated as issued by both an intermediary licensee and a market participant. It authorises a market participant to prepare the PDS subject to a written agreement and intermediary disclosure obligations (ss.1013A(5)–(6), new 1012L, and 1013D(5)). It does not broaden Part 7.9 beyond this specific class of derivatives or other financial products."},"complexity_factors":["Cross-references to multiple provisions in Part 7.9 of the Corporations Act (new ss.1012L, 1013A(5)–(7), 1013D(5), 1013E amendment, and 1017I(2A)) increasing interpretive load","Allocation of legal responsibilities between two classes of licensees (intermediary licensee and market participant) with the market participant as 'responsible person' in some respects (s.1013A(5))","Requirement for a written agreement specifying duties (s.1013A(6)) creates contract‑based compliance variability","Use of the phrase 'reasonable steps' (s.1013A(6)) introduces factual, case‑by‑case compliance uncertainty and supervisory discretion","Prescriptive disclosure items for intermediary acquisitions (s.1013D(5)(c)(i)–(iv)) that must be reflected in both full and short‑form PDSs (s.1017I(2A)), increasing drafting complexity","Interaction with existing Short‑Form PDS regulations (Regulation cross‑reference) requiring careful alignment","Compliance burden concentrated on intermediary licensees to ensure retail clients receive extra information, while market participants can centralise PDS preparation","Potential for divergent contractual arrangements and operational practices across markets and intermediaries leading to uneven implementation"],"plain_english_summary":"This instrument changes how Product Disclosure Statements (PDSs) work for exchange‑traded derivatives treated as having multiple issuers. For such derivatives, the market participant may prepare the PDS while the intermediary licensee must ensure retail clients receive required issuer information (see s.5 inserting ss.1013A(5) and new 1012L). It mandates a written agreement allocating duties (s.1013A(6)), requires intermediaries to take “reasonable steps” to deliver disclosures, and forces specific warnings about intermediary acquisitions, extra costs, rights and dispute resolution (s.1013D(5))."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883","history":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883/history","analysis":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883/analysis","conflicts":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883/conflicts","importantCases":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883/important-cases","documents":"/api/acts/asic-corporations-exchange-traded-derivatives-multiple-issuers-instrument-2016-883/documents"}}