{"id":"F2017L01198","name":"ASIC Corporations (Factoring Arrangements) Instrument 2017/794","slug":"asic-corporations-factoring-arrangements-instrument-2017-794","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439332,"registerId":"F2017L01198-fast-fetch-1775955396435","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Factoring Arrangements) Instrument 2017/794","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Corporations (Factoring Arrangements) Instrument 2017/794\n\nI, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 12 September 2017\n\n \n\n \n\nAnthony Graham\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc492978119)\n\n[1 Name of legislative instrument](#_Toc492978120)\n\n[2 Commencement](#_Toc492978121)\n\n[3 Authority](#_Toc492978122)\n\n[4 Definitions](#_Toc492978123)\n\n[Part 2—Exemption](#_Toc492978124)\n\n[5 Exemption from licensing, hawking and disclosure obligations](#_Toc492978125)\n\n[6 Where exemption is available](#_Toc492978126)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Factoring Arrangements) Instrument 2017/794.\n\n2 Commencement\n\nThis instrument commences at the same time as the commencement of the ASIC Corporations (Repeal) Instrument 2017/796.\n\n3 Authority\n\nThis instrument is made under paragraphs 926A(2)(a), 992B(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 person means a person who:\n\n(a) is an eligible seller; or\n\n(b) is or proposes to be the purchaser of debt obligations under the terms of a factoring arrangement; or\n\n(c) provides a financial service in relation to a factoring arrangement.\n\neligible seller means a person who is or proposes to be the seller of debt obligations under the terms of a factoring arrangement.\n\nfactoring arrangement means an arrangement under which a person acquires debt obligations, such as receivables, at a discount.\n\nPart 2—Exemption\n\n5 Exemption from licensing, hawking and disclosure obligations\n\nAn eligible person does not have to comply with any of the following:\n\n(a) subsection 911A(1) of the Act for the provision of any of the following financial services:\n\n(i) dealing in derivatives that are factoring arrangements;\n\n(ii) providing financial product advice in relation to derivatives that are factoring arrangements;\n\nNote: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115 provides relief from subsections  911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption under section 926A of the Act.\n\n(b) section 992A of the Act in relation to the making of an offer to issue a derivative that is a factoring arrangement;\n\n(c) Part 7.9 of the Act in relation to a recommendation to acquire, or an offer or issue of, or making an offer to arrange the issue of, a derivative that is a factoring arrangement.\n\n6 Where exemption is available\n\nThe exemption in section 5 is available where the eligible person:\n\n(a) is an eligible seller; or\n\n(b) otherwise:\n\n(i) gives the terms and conditions of the factoring arrangement in writing to each retail client to whom the factoring arrangement is issued before the arrangement is issued; and\n\n(ii) establishes and maintains an internal dispute resolution system that:\n\n(A) complies with Australian Standard AS ISO 10002-2006 Customer satisfaction – Guidelines for complaints handling in organizations (ISO 10002:2004 MOD) published by SAI Global Limited on 5 April 2006; and\n\n(B) covers complaints made by retail clients against the person in connection with the provision of financial services that relate to factoring arrangements.\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":3,"scope_assessment":{"changed":false,"description":"The instrument maintains a narrow, targeted scope focused specifically on factoring arrangements. It does not appear to have expanded beyond its original purpose of providing licensing relief for invoice financing/factoring transactions."},"complexity_factors":["Short instrument with only 6 sections across 2 Parts","Only 4 defined terms in section 4 (Act, eligible person, eligible seller, factoring arrangement)","Single exemption mechanism in section 5 with three sub-paragraphs referencing specific Corporations Act sections","Simple conditional structure in section 6: automatic exemption for sellers, or two specific conditions for purchasers","No nested exceptions or complex cross-referencing beyond the primary legislation references","References to external standard (AS ISO 10002-2006) but this is a straightforward incorporation by reference"],"plain_english_summary":"This ASIC instrument exempts businesses involved in factoring arrangements from needing an Australian Financial Services Licence (AFSL) where specified conditions are met. It lets sellers of invoices and purchasers (factors) operate without an AFSL, provided factors give retail clients written terms before deals and maintain a complaints-handling system meeting AS ISO 10002-2006.\n\nThe change reduces regulatory burden and eases access to working capital for small businesses while keeping basic consumer safeguards."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument does not assert a change to the Corporations Act’s substantive scope; it creates specified statutory exemptions for persons dealing in factoring arrangements (s5) and sets conditions for relying on those exemptions (s6). There is no provision in this instrument revoking or expanding the Act beyond those targeted reliefs, so no evidence here of a broader scope change from the Act’s original framework."},"complexity_factors":["Cross-references to multiple Corporations Act provisions (paragraphs 926A(2)(a), 992B(1)(a), 1020F(1)(a); and subsections/parts cited in s5) require looking up the Act for full effect.","Narrow, technical definitions (’factoring arrangement’, ‘eligible person’, ‘eligible seller’) determine application; their interpretation affects scope and requires reading Part 1 (s4).","Conditional exemption structure (s6): an alternative compliance pathway requires written terms to each retail client and an ISO-standard internal dispute-resolution system, creating operational and record-keeping burdens.","Reference to an external technical standard (AS ISO 10002-2006) imports non-statutory compliance content and may necessitate administrative changes by affected businesses (s6(b)(ii)).","Interaction with other instruments (commencement linked to ASIC Corporations (Repeal) Instrument 2017/796 and note referencing Instrument 2015/1115) means practical effect depends on timing and related reliefs."],"plain_english_summary":"This instrument exempts “eligible persons” involved in factoring arrangements—buyers, sellers or providers of services around receivables bought at a discount—from certain licensing, hawking and product-offer/disclosure obligations in the Corporations Act (see s5). \n\nTo rely on the exemption, an eligible person must be an eligible seller or, otherwise, give written terms to each retail client and maintain an internal dispute-resolution system that complies with AS ISO 10002-2006 (see s6). The measure shifts compliance from licensing to contract disclosure and complaints-handling duties."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794","history":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794/history","analysis":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794/analysis","conflicts":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794/conflicts","importantCases":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794/important-cases","documents":"/api/acts/asic-corporations-factoring-arrangements-instrument-2017-794/documents"}}