{"id":"F2018L01313","name":"ASIC Corporations (Group Purchasing Bodies) Instrument 2018/751","slug":"asic-corporations-group-purchasing-bodies-instrument-2018-751","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98006,"registerId":"commonwealth-F2018L01313-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Group Purchasing Bodies) Instrument 2018/751","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Group Purchasing Bodies) Instrument 2018/751\n\nmade under subsections 601QA(1), 926A(2), 951B(1) and 992B(1) of the Corporations Act 2001\n\nCompilation No. 2\n\nCompilation date: 14 October 2024\n\nIncludes amendments: F2024L01272\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the ASIC Corporations (Group Purchasing Bodies) Instrument 2018/751 that shows the text of the law as amended and in force on 14/10/2024 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.\n\nApplication, saving and transitional provisions for provisions and amendments\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart 1—Preliminary..................................................4\n\n1 Name of legislative instrument...........................................4\n\n3 Authority............................................................4\n\n4 Definitions..........................................................4\n\nPart 2—Exemptions..................................................7\n\n5 Risk management scheme exemptions.....................................7\n\n6 Conditions...........................................................9\n\n7 Exclusion from relying on this instrument.................................11\n\n8 Application of relief to non-incorporated group purchasing bodies..............11\n\n9 Application for review by Administrative Review Tribunal of decisions made under section 7 11\n\nEndnotes..........................................................13\n\nEndnote 1—About the endnotes.............................................13\n\nEndnote 2—Abbreviation key..............................................14\n\nEndnote 3—Legislation history.............................................15\n\nEndnote 4—Amendment history............................................16\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Group Purchasing Bodies) Instrument 2018/751.\n\n3 Authority\n\nThis instrument is made under subsections 601QA(1), 926A(2), 951B(1) and 992B(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nauthorised representative has the meaning given by section 761A of the Act.\n\ncontrol has the meaning given by section 50AA of the Act.\n\ncustodial or depository service has the meaning given by section 766E of the Act.\n\ndecision has the same meaning as in the Administrative Review Tribunal Act 2024.\n\nemployee includes independent contractor.\n\nfinancial product advice has the meaning given by section 766B of the Act.\n\ngroup purchasing body means a body that arranges for the issue of a risk management product or for a person to be covered by an existing risk management product.\n\ngroup purchase payment means a payment made by a person to the group purchasing body under an arrangement whereby the body will make a payment to the issuer of the risk management product for or under the product that will enable the person to be covered by the product and either:\n\n(a) the product is to be issued to that person; or\n\n(b) when the product is held by the group purchasing body, the cover is to apply by extension to that person as a named individual under the terms of the product (including any schedule to the product) for an additional payment made to the issuer of the risk management product.\n\nincidental provider: a group purchasing body that operates a risk management scheme, or that provides financial services in relation to risk management products, is an incidental provider if the body:\n\n(a) provides financial services only incidentally to another relationship with the persons who will be covered by the risk management products to which the financial services or the risk management scheme relates; and\n\n(b) does not carry on any business in order to make monetary payments to members.\n\nissue and issuer have the meanings given by section 761E of the Act.\n\nlimited licensee has the meaning given by subsection 989B(4) of the Act (as modified by regulation 7.8.12A of the Corporations Regulations 2001).\n\nmember, in relation to a group purchasing body, means:\n\n(a) where the body is a company—a member of that company; and\n\n(b) otherwise—a person who is treated as a member of the body under its constituent documents and has agreed to be a member of the body.\n\nmultinational pooling arrangement means an arrangement under which life, total and permanent disability or income protection insurance is to be issued that:\n\n(a) is substantially arranged between bodies that are incorporated or formed outside this jurisdiction and where the majority of the persons who are covered by the insurance are situated outside this jurisdiction; and\n\n(b) covers employees of, or persons contracted to provide services to, the group purchasing body or another entity that controls the body or that is controlled by the body; and\n\n(c) provides for payments to be received by the group purchasing body based on claims experience for all those covered by the insurance under the arrangement.\n\nrisk management product means a financial product of the kind referred to in paragraphs 764A(1)(d), (e) or (f) or paragraph 763A(1)(b) of the Act other than a general insurance product that a financial services licensee must not deal in because of section 985D of the Act.\n\nrisk management scheme means a managed investment scheme under which:\n\n(a) monies are contributed and are pooled or used in a common enterprise to confer any of the following benefits on the persons contributing:\n\n(i) lower costs to secure cover, or the securing of cover on more favourable terms, under a risk management product issued by a person who is not, and is not associated with, the group purchasing body operating the scheme;\n\n(ii) the availability of cover, which would not otherwise be available, under such a risk management product; and\n\n(b) the persons contributing do not have any entitlement to receive any distributions of scheme property other than any of the following:\n\n(i) payments that are directly attributable to the cover provided by the risk management product;\n\n(ii) payments received from the product issuer or any financial services licensee or their associates for arranging for the persons to be covered by the product.\n\nscheme property, in relation to a risk management scheme, means:\n\n(a) contributions of money or money’s worth to the scheme; and\n\n(b) money borrowed or raised by the group purchasing body for the purposes of the scheme; and\n\n(c) property acquired, directly or indirectly, with, or with the proceeds of, contributions or money referred to in paragraph (a) or (b); and\n\n(d) income and property derived, directly or indirectly, from contributions, money or property referred to in paragraph (a), (b) or (c).\n\nstandard licensee means a financial services licensee that is not a limited licensee.\n\nPart 2—Exemptions\n\n5 Risk management scheme exemptions\n\nExemptions\n\n(1) A group purchasing body does not have to comply with subsection 601ED(5) of the Act in relation to the operation of a risk management scheme.\n\n(2) A group purchasing body does not have to comply with subsection 911A(1) of the Act for the provision of the following financial services:\n\n(a) dealing in a risk management product or an interest in a risk management scheme operated by the body;\n\n(b) providing a custodial or depository service by holding a risk management product on trust for or on behalf of another person;\n\n(c) providing financial product advice in relation to a risk management product or an interest in a risk management scheme operated by the body, to the extent that that advice is provided as a result of the body giving information or statements under paragraph 6(e).\n\nNote: ASIC Corporations (Effect of Licensing Exemptions) Instrument 2015/1115 provides relief from subsection 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need a financial services licence because of an exemption under section 926A of the Act.\n\n(3) A group purchasing body that is a financial services licensee or an authorised representative of a financial services licensee does not have to comply with Divisions 2, 3 and 4 of Part 7.7 or Divisions 2, 3, 5 and 6 of Part 7.8 of the Act in relation to the financial services referred to in subsection (2).\n\nWhere the exemptions apply\n\n(4) A group purchasing body that is a standard licensee or an authorised representative of a standard licensee may rely on the exemptions in subsections (1) to (3) only if:\n\n(a) the only persons who will be covered by the risk management product or issued an interest in the risk management scheme are officers or employees of the body or their relatives; and\n\n(b) either:\n\n(i) the body is an incidental provider; or\n\n(ii) the body meets the requirements of subsection (6).\n\n(5) A group purchasing body that is not a standard licensee or an authorised representative of a standard licensee may rely on the exemptions in subsections (1) to (3) only if:\n\n(a) the body does not carry on a business of issuing risk management products other than interests in a risk management scheme; and\n\n(b) the body does not provide any financial product advice in relation to a risk management product other than financial product advice covered by paragraph (2)(c); and\n\n(c) either:\n\n(i) the body is an incidental provider; or\n\n(ii) the body meets the requirements of subsection (6).\n\n(6) A body meets the requirements of this subsection if:\n\n(a) it does not receive any payments, remuneration or other benefits for the provision of financial services relating to the risk management product or an interest in the risk management scheme, except for the following:\n\n(i) a payment from a person (covered person) who is covered by the risk management product where:\n\n(A) the amount of the payment is separately identified (in dollars from any other amounts payable by the person to the body to become or remain a member of the body) in a written request for payment or written statement of the amount payable given by the body to the person; and\n\n(B) an equivalent amount is to be paid by the body to the product issuer;\n\n(ii) payments from a member of the body or a covered person to cover the costs reasonably incurred by the body for providing financial services relating to the risk management product or an interest in the risk management scheme;\n\n(iii) rebates for which the body has an obligation to promptly pay an equivalent amount to covered persons (other than covered persons who are the body or its associates);\n\n(iv) payments under a multinational pooling arrangement; and\n\n(b) where the body is not a standard licensee or an authorised representative of a standard licensee—the body is not an associate of:\n\n(i) any person who carries on a business of issuing risk management products (other than interests in a risk management scheme); or\n\n(ii) a financial services licensee (other than a limited licensee), or any authorised representative of such a licensee, who deals in or provides financial product advice about a risk management product;\n\nignoring any association under the terms of a multinational pooling arrangement.\n\n6 Conditions\n\nA group purchasing body that relies on the exemption in subsection 5(1) must:\n\n(a) ensure that the making of a group purchase payment by a person to the body:\n\n(i) where the product is to be issued to the person—is a discharge, as between the person and the issuer of the risk management product, of any liability of the person in respect of the product to the extent of the payment; or\n\n(ii) where the product has been or is to be issued to the body—is a discharge, as between the person and the issuer of the risk management product, of any liability of the body in respect of the product in relation to the person to the extent of the payment; and\n\nNote 1: This condition is based on section 985B of the Act. The body could, for example, meet this condition by appropriate contractual/agency arrangements with the product issuer.\n\nNote 2: This condition does not require an arrangement that affects the rights of the issuer of the risk management product to recover the payment from the body.\n\n(b) take reasonable steps to promptly bring to the attention of each person to whom the body provides financial services relating to the risk management product and who may reasonably believe they will be covered by the product, if:\n\n(i) it is not reasonable to expect that the cover will apply for the period represented to the person; or\n\n(ii) the product is, or is likely to be, cancelled or not renewed,\n\nunless either:\n\n(iii) the risk management product has been issued to the person and the terms of the product require the product issuer to give the person notice, before cancellation or non-renewal of the product, that the product will be cancelled or not renewed; or\n\n(iv) substantially similar cover applies or will apply for the period (or remainder of the period) represented to the person; and\n\n(c) enter an obligation under which the body is liable to compensate any person who suffers loss or damage as a result of the body failing to comply with paragraph (b);\n\nNote: This obligation may be created in any way, provided it is capable of being enforced. It may, for example, be created by the terms of a contract or by deed poll.\n\n(d) establish a facility by which each person to whom the body provides financial services relating to the risk management product and who may reasonably believe they will be covered by the product may, by taking reasonable steps, verify with the product issuer or a financial services licensee or an authorised representative acting on behalf of the issuer or licensee, without charge, that the product has been issued to the person or the body and remains current; and\n\n(e) take reasonable steps to give, as soon as practicable after the body has reason to believe that the financial services to which the risk management product relates will be provided to a person (and, if the person may elect whether to be covered, before the election is made), the following information and statements in writing to the person:\n\n(i) factual information about the nature of the cover provided by the product, including the period for which the cover will apply, and the role of the body in providing the financial services to which the product relates;\n\n(ii) a statement that the body will ensure that a person who requests a copy of the terms and conditions of the product will receive, without charge, a copy within a reasonable time after the request;\n\n(iii) information about any amount payable by the person to obtain the cover under the product (if the amount can be separately identified in dollars from any other amounts payable by the person to the body);\n\n(iv) if the body will receive payments (rebates) from the product issuer or any financial services licensee or their associates to arrange for the issue of the risk management product or for a person to be covered by an existing risk management product, the amounts (if any) that will be paid to the person to be covered by the product from those rebates or, if the amounts cannot be ascertained, information about how the amounts will be determined;\n\n(v) if the body is neither a financial services licensee nor the authorised representative of such a licensee—a statement that the body does not hold an Australian financial services licence and that the person should consider obtaining their own financial product advice about the product;\n\n(vi) if the body is a limited licensee or an authorised representative of a limited licensee—a statement that the body’s financial services licence, or the licence under which they are an authorised representative, does not authorise them to provide financial services in relation to a group purchasing scheme or risk management product, and that the person should consider obtaining their own financial product advice about the product;\n\n(vii) information about the obligation described in paragraph (c) and the facility described in paragraph (d).\n\n7 Exclusion from relying on this instrument\n\nA group purchasing body cannot rely on the exemptions in section 5 if ASIC has given a notice to the body, stating that the body cannot rely on this instrument, and ASIC has not withdrawn the notice. The notice may be given by sending it to the body’s address last known to ASIC.\n\n8 Application of relief to non-incorporated group purchasing bodies\n\nThis instrument applies to a group purchasing body that is not incorporated, with the following changes:\n\n(a) the exemptions in section 5 may be relied on by an office bearer or employee of the body authorised by the body to do so;\n\n(b) a condition that would be imposed on the body is imposed instead on each office bearer of the body but may be discharged by any of them or by an employee of the body;\n\n(c) a notice referred to in section 7 that is required to be sent to the address of the body may instead be sent to the address of an office bearer or employee of the body and has effect in relation to the body and in relation to each office bearer and employee of the body.\n\n9 Application for review by Administrative Review Tribunal of decisions made under section 7\n\n(1) An affected person in relation to a group purchasing body may make an application to the Tribunal for review of a decision made by ASIC to give a notice under section 7 in relation to the body.\n\n(2) If:\n\n(a) an affected person in relation to a group purchasing body makes an application to ASIC for ASIC to withdraw a notice given under section 7 in relation to the body; and\n\n(b) ASIC makes a decision not to withdraw the notice;\n\nan affected person in relation to the body may make an application to the Tribunal for review of the decision.\n\n(3) If ASIC makes a decision to which subsection (1) or (2) applies, ASIC must take such steps as are reasonable in the circumstances to give the group purchasing body notice in writing or otherwise of:\n\n(a) if subsection (2) applies—the making of the decision; and\n\n> Note: In the case of a decision to which subsection (1) applies, notice of the decision will be given by the giving of the notice referred to in section 7.\n\n(b) in any case—the right of an affected person to have the decision reviewed by the Tribunal.\n\nThe notice may be given by sending it to the body’s address last known to ASIC, provided that if the group purchasing body is not incorporated, the notice may instead be sent to the address of an office bearer or employee of the body.\n\n(4) A failure by ASIC to comply with this section does not affect the validity of the decision.\n\n(5) In this section, affected person in relation to a group purchasing body and a decision means:\n\n(a) if the group purchasing body is incorporated—the body; and\n\n(b) otherwise—the body and each officer bearer and employee of the body whose interests are affected by the decision.\n\nEndnotes\n\nEndnote 1—About the endnotes\n\n> Note: The endnotes provide information about this compilation and the compiled law.\n\n> Note: The following endnotes are included in every compilation:\n\n> Note: Endnote 1—About the endnotes\n\n> Note: Endnote 2—Abbreviation key\n\n> Note: Endnote 3—Legislation history\n\n> Note: Endnote 4—Amendment history\n\n> Note: Abbreviation key—Endnote 2\n\n> Note: The abbreviation key sets out abbreviations that may be used in the endnotes.\n\n> Note: Legislation history and amendment history—Endnotes 3 and 4\n\n> Note: Amending laws are annotated in the legislation history and amendment history.\n\n> Note: The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\n> Note: The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\n> Note: Misdescribed amendments\n\n> Note: A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\n> Note: If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\nEndnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                     |\n| ---------------------------------------------- | ----------------------------------- |\n| am = amended                                   | par = paragraph(s)/subparagraph(s)  |\n| amdt = amendment                               | /sub‑subparagraph(s)                |\n| c = clause(s)                                  | pres = present                      |\n| C[x] = Compilation No. x                       | prev = previous                     |\n| Ch = Chapter(s)                                | (prev…) = previously                |\n| def = definition(s)                            | Pt = Part(s)                        |\n| Dict = Dictionary                              | r = regulation(s)/rule(s)           |\n| disallowed = disallowed by Parliament          | reloc = relocated                   |\n| Div = Division(s)                              | renum = renumbered                  |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                      |\n| Effect                                         | rs = repealed and substituted       |\n| F = Federal Register of Legislation            | s = section(s)/subsection(s)        |\n| gaz = gazette                                  | Sch = Schedule(s)                   |\n| LA = Legislation Act 2003                      | Sdiv = Subdivision(s)               |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment       | SR = Statutory Rules                |\n| cannot be given effect                         | Sub‑Ch = Sub‑Chapter(s)             |\n| mod = modified/modification                    | SubPt = Subpart(s)                  |\n| No. = Number(s)                                | underlining = whole or part not     |\n| o = order(s)                                   | commenced or to be commenced        |\n| Ord = Ordinance                                |                                     |\n\nEndnote 3—Legislation history\n\n| Name                                                            | Registration                | Commencement | Application, saving and transitional provisions |\n| --------------------------------------------------------------- | --------------------------- | ------------ | ----------------------------------------------- |\n| ASIC Corporations (Group Purchasing Bodies) Instrument 2018/751 | 18/9/2018 (see F2018L01313) | 25/9/2018    | -                                               |\n| ASIC Corporations (Amendment) Instrument 2018/1098              | 5/12/2018 (see F2018L01667) | 6/12/2018    | -                                               |\n| ASIC Corporations (Amendment) Instrument 2024/806               | 8/10/2024 (see F2024L01272) | 14/10/2024   | -                                               |\n\nEndnote 4—Amendment history\n\n| Provision affected | How affected                |\n| ------------------ | --------------------------- |\n| Section 2          | rep. s48D LA                |\n| Section 4          | am. 2018/1098 and 2024/806  |\n| Section 9          | ad. 2018/1098, am. 2024/806 |","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument remains focused on its original purpose of providing targeted relief for group purchasing bodies arranging risk management products. The 2024 amendments were technical updates to replace references to the Administrative Appeals Tribunal with the new Administrative Review Tribunal, and minor definitional updates. No expansion of substantive scope."},"complexity_factors":["Multiple overlapping exemption pathways with different conditions depending on licence status (standard licensee vs limited licensee vs unlicensed)","Nested conditional logic in section 5: exemptions apply only if (a) AND (b) AND (c), with sub-conditions (i) vs (ii)","14 defined terms in section 4, several referencing external Corporations Act sections (50AA, 761A, 766E, etc.)","Cross-references to 4 different Corporations Act subsections in the authority provision (601QA, 926A, 951B, 992B)","Complex payment rules in section 5(6) with four separate permitted payment categories and specific anti-association rules","Modified application to unincorporated bodies in section 8 requiring conceptual translation of corporate concepts to non-corporate structures","Interaction with external instruments (ASIC Corporations (Effect of Licensing Exemptions) Instrument 2015/1115 referenced in note to section 5(2))"],"plain_english_summary":"This instrument allows group purchasing bodies (industry associations, employer groups, etc.) to be exempted from registering as managed investment schemes, holding an AFSL, and some disclosure/conduct rules when arranging group insurance, provided they meet transparency, payment and consumer‑protection conditions and provide verification and compensation safeguards. It affects those bodies, their members/employees and ASIC (which can ban misuse). October 2024 added rights to appeal ASIC decisions to the Administrative Review Tribunal."},"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"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The instrument remains focused on its original objective: to permit certain group purchasing arrangements for risk-management products to operate without full application of managed-investment and licensing requirements, subject to protective conditions. Later amendments updated definitions and procedural provisions (notably the review/notice wording to align with the Administrative Review Tribunal Act 2024 and clarified defined terms in section 4), but did not materially broaden the instrument's substantive scope beyond the original limits and conditions. Changes are technical and procedural rather than an expansion of the categories of activity that qualify for relief."},"complexity_factors":["18 defined terms in section 4 (broadly technical and cross-referential definitions)","Nested eligibility conditions in section 5(4)–(6) (multiple branches depending on licence type and incidental-provider status)","Multiple cross-references to the Corporations Act (e.g. ss 601ED(5), 911A(1), 985B, 985D, 989B(4), 761A, 766E) requiring users to consult primary Act provisions","Detailed operational conditions in section 6 with multiple subrequirements (payment-discharge mechanics, notice duties, compensation obligation, verification facility, extensive written disclosure obligations)","Regulator discretion and procedural detail in sections 7 and 9 (ASIC notices, Tribunal review path, varied notice rules for incorporated vs unincorporated bodies)","Special-rule carve-outs and exceptions (multinational pooling arrangements allowed under particular payment rules, s5(6)(a)(iv))","Different legal treatment for incorporated vs non-incorporated bodies (s8) creating parallel compliance tracks","Recent amendments to definitions and review provisions (2018/1098 and 2024/806) that require tracking amendment history for precise application"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- This ASIC legislative instrument creates an exemption framework for \"group purchasing bodies\" (GPBs) that arrange or operate pooled arrangements to obtain \"risk management products\" (broadly: certain life, disability or income-protection type financial products) for groups of people. The core effect is that eligible GPBs can be relieved from specified licensing and managed-investment scheme obligations in the Corporations Act, provided they meet the conditions set out in the instrument (see section 5 and section 6).\n\n**Who it affects\n\n- Group purchasing bodies — organisations that arrange for a risk management product to be issued or to cover people under an existing product (s4: definition of group purchasing body).\n- People who would be covered under those products (called \"covered persons\" or members).\n- Product issuers and financial services licensees who issue, advise on, or deal in the relevant products.\n- ASIC, because it can withdraw the exemption for a particular body (s7) and must give review information (s9).\n\n**Key exemptions provided (what GPBs do not have to do)\n\n- A GPB may be exempt from complying with: the managed investment scheme operating requirement in subsection 601ED(5) (i.e. some obligations that apply to managers of pooled schemes); and the requirement to hold an Australian financial services licence for certain financial services connected to the risk management product (subsection 911A(1)), subject to the limits in the instrument (s5(1)–(3)).\n- The exemptions apply only for specified services: dealing in the risk management product or scheme interest, providing custodial/depository services for such products, and limited financial product advice tied to the written information the body gives under the instrument (s5(2)).\n\n**Who may rely on the exemptions and key eligibility tests\n\n- A GPB that is a \"standard\" licensee (broadly, a full financial services licence holder) or its authorised representative may rely on the exemptions only if: (a) the only people covered are officers/employees of the body or their relatives; and (b) the body is either an \"incidental provider\" (financial services are incidental to another relationship) or meets the payment/association conditions in s5(6) (s5(4)).\n- A GPB that is not a standard licensee (including limited licensees or unlicensed but eligible bodies) may rely on the exemptions only if it does not operate a business issuing risk products other than scheme interests, does not provide financial product advice outside limited circumstances, and is either an incidental provider or meets the s5(6) requirements (s5(5)).\n- The s5(6) requirements limit the types of payments the body may receive, require limited association rules (to reduce ties to issuers and licensees), and permit certain multinational pooling payments (s5(6)).\n\n**Conditions attached to relying on the exemption (what GPBs must do)\n\n- Payments by members/covered persons that go to the GPB must operate as a discharge of the person’s or body’s liability to the product issuer to the extent of the payment — typically achieved by contractual/agency arrangements with the issuer (s6(a); note to s6(a)).\n- The GPB must promptly tell people if cover will not apply for the period represented or if a product is or will likely be cancelled or not renewed, unless the issuer is already required to give notice or substantially similar cover applies (s6(b)).\n- The GPB must enter an enforceable obligation to compensate anyone who suffers loss because the GPB failed to comply with the required notices (s6(c)).\n- The GPB must establish a free verification facility so covered persons can confirm with the issuer (or its licensee/representative) that the product is issued and current (s6(d)).\n- The GPB must give written information to persons who may be covered, including factual details about cover and the role of the body, how to get the product terms, any separately identified amounts payable, rebates information (if relevant), and statements about licensing status and the GPB’s compensation/verification arrangements (s6(e)).\n\n**Other operational points\n\n- ASIC may issue a notice saying a GPB cannot rely on this instrument; if such a notice is in force the GPB loses the exemption (s7).\n- The instrument can apply to unincorporated GPBs (different technical handling: office-bearers and employees may rely on the exemptions; conditions are imposed on office-bearers) (s8).\n- Affected persons can apply to the Administrative Review Tribunal for review of ASIC’s notice decisions; ASIC must notify affected persons of review rights (s9).\n\n**Stated purpose and a test of trade-offs and incentives (what the instrument claims and what that implies)\n\n- The instrument is framed to reduce regulatory burdens on organisations that pool to secure risk-management cover for a defined group while preserving protections for members through disclosure, verification and compensation obligations (see the exemptions in s5 and the conditions in s6). The claimed trade-off is regulatory relief in return for: (a) payment-handling rules that aim to ensure funds reach the issuer and discharge liabilities (s6(a)); (b) transparent communication of what cover exists and how to verify it (s6(b)–(e)); and (c) a compensation promise for failures (s6(c)).\n\n- Costs, incentives and implementation risks to note:\n  - Who pays: covered persons remain liable to the issuer unless the body’s arrangements operate as a discharge (s6(a)). Practically, GPBs must contract with issuers or act as agents to effect that discharge — that is an execution and counterparty risk (s6(a), note).\n  - Incentives for GPBs: the instrument allows GPBs to avoid having to hold or expand an AFSL or comply with the full managed-scheme rules, lowering compliance cost for those that meet conditions (s5). That creates an incentive to operate within the conditions; it also creates an incentive to structure receipts as permitted payments (s5(6)(a)).\n  - Rebates and conflicts: if a GPB receives rebates from issuers, it must disclose payments to covered persons or how those amounts will be determined (s6(e)(iv)). Rebates could create divergent incentives between the GPB and members unless disclosure and refund obligations are robust (s6(a)(i), s6(e)(iv)).\n  - Association limits: the instrument restricts reliance where the body is an associate of issuers or of full licensees to reduce capture risk (s5(6)(b)). This narrows eligibility for bodies closely tied to insurers.\n  - Substitution effects and market scope: by lowering regulatory friction for internal pooling arrangements focused on employees/officers or close groups, the instrument encourages group-based purchasing over individual retail buying, which may affect market demand for certain retail products (s5(4)).\n  - Compliance/administration costs: GPBs must set up a free verification channel with issuers, maintain disclosure systems, and be able to demonstrate contractual arrangements that discharge liabilities — these are administrative costs and operational risks (s6(d), s6(e), s6(a)).\n  - ASIC discretion: ASIC can remove the exemption for a body by notice (s7). That introduces regulatory uncertainty for GPBs relying on the relief, and triggers review rights under the Administrative Review Tribunal framework (s9).\n\n**Who decides and how behaviour changes\n\n- GPBs decide whether to structure cover via pooled arrangements and whether to meet the instrument’s conditions so they can rely on the exemptions (s5, s6).\n- Product issuers must agree to the contractual/agency arrangements the GPB needs to satisfy s6(a) if those arrangements are to operate as a discharge.\n- ASIC decides whether a particular GPB may rely on the instrument and can revoke that ability by issuing a notice (s7). Affected persons can seek review (s9).\n\n**Concrete implementation frictions to watch (section references included)\n\n- Ensuring group purchase payments operate as legal discharges requires clear agency/contract terms with issuers (s6(a); note to s6(a)).\n- Making the verification facility effective in practice requires co‑operation from issuers or licensees and an accessible, timely process (s6(d)).\n- Proper disclosure of rebates and separately identified payments is necessary to avoid hidden cross-subsidies and to meet s6(e)(iii)–(iv).\n- Non‑incorporated GPBs must manage obligations through office-bearers and employees, which changes legal risk allocation (s8).\n\n**Main sections to read for detail**: exemptions and eligibility (s5), operating conditions (s6), ASIC exclusion power (s7), treatment of unincorporated bodies (s8), and review rights (s9)."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751","history":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751/history","analysis":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751/analysis","conflicts":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751/conflicts","importantCases":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751/important-cases","documents":"/api/acts/asic-corporations-group-purchasing-bodies-instrument-2018-751/documents"}}