{"id":"F2022L01069","name":"ASIC Corporations (Incidental Retail Cover) Instrument 2022/716","slug":"asic-corporations-incidental-retail-cover-instrument-2022-716","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102560,"registerId":"commonwealth-F2022L01069-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Incidental Retail Cover) Instrument 2022/716","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Incidental Retail Cover) Instrument 2022/716\n\nmade under paragraphs 926A(2)(c), 951B(1)(c), 992B(1)(c), 994L(2)(c) and 1020F(1)(c) of the Corporations Act 2001.\n\nCompilation No. 1\n\nCompilation date: 1 August 2025\n\nIncludes amendments up to: ASIC Corporations (Amendment) Instrument 2025/456 \\[F2025L00891\\]\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716 that shows the text of the law as amended and in force on 1 August 2025 (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\n[Part 1—Preliminary](#_Toc206149206)\n\n1 Name of legislative instrument...........................................4\n\n3 Authority............................................................4\n\n4 Definitions..........................................................4\n\nPart 2—Declaration..................................................5\n\n5 Meaning of retail and wholesale client.....................................5\n\nPart 3—Repeal......................................................6\n\n6 Repeal..............................................................6\n\nEndnotes...........................................................7\n\nEndnote 1—About the endnotes..............................................7\n\nEndnote 2—Abbreviation key...............................................8\n\nEndnote 3—Legislation history..............................................9\n\nEndnote 4—Amendment history............................................10\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.\n\n3 Authority\n\nThis instrument is made under paragraphs 926A(2)(c), 951B(1)(c), 992b(1)(c), 994L(2)(c) and 1020F(1)(c) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nPart 2—Declaration\n\n5 Meaning of retail and wholesale client\n\nParts 7.6 (other than Divisions 4 and 8), 7.7, 7.8, 7.8A and 7.9 of the Act apply in relation to a general insurance product as if section 761G of the Act were modified or varied as follows:\n\n(a) in paragraph (5)(b)(viii), omit “.”, substitute “; and”;\n\n(b) after paragraph (5)(b), insert:\n\n  “(c) the general insurance product is not an incidental product.”;\n  (c) in subsection (12), before the definition of small business, insert:\n  “incidental product means a general insurance product (first product) in relation to which all the following apply:\n  (a) the first product is provided under a contract of insurance that includes another general insurance product (wholesale product) that is provided to the person as a wholesale client;\n\n> Note: See subsection 764A(1A) in relation to contracts of insurance that provide a kind of cover and subsection 764A(1B) in relation to contracts of insurance that provide a kind of cover in relation to 2 or more kinds of assets.\n\n    (b) the first product is incidental to the wholesale product;\n    (c) the first product is included in the contract of insurance and there has been no separate decision or election in relation to the first product by the person acquiring the wholesale product;\n    (d) the issuer of the first product and of the wholesale product does not offer the first product as a standalone general insurance product on the same terms;\n    (e) no separate premium is payable by the person acquiring the wholesale product for inclusion of the first product in the contract of insurance.”.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed at the start of 16 August 2030.\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 (Incidental Retail Cover) Instrument 2022/716 [F2022L01069] | 15/08/2022   | 16/08/2022   |                                                 |\n| ASIC Corporations (Amendment) Instrument 2025/456 [F2025L00891]               | 31/07/2025   | 01/08/2025   |                                                 |\n\nEndnote 4—Amendment history\n\n| Provision affected | How affected |\n| ------------------ | ------------ |\n| Section 2          | rep. s48D LA |\n| Section 6          | am. 2025/456 |","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"Section 5 narrows the statutory definition of when a general insurance product is a 'retail' product by excluding specified 'incidental' products that are bundled with wholesale products and meet conditions (a)–(e). Mechanically, that shifts certain consumer protections and disclosure obligations away from the incidental cover and treats it in the same regulatory category as the wholesale product (see instrument section 5 and the inserted 'incidental product' definition)."},"complexity_factors":["Modifies the retail/wholesale client boundary by altering how section 761G operates rather than creating a standalone rule.","Defines 'incidental product' by a multi‑condition test (conditions (a)–(e) in section 5), requiring conjunctive factual findings.","Cross‑references to other Corporations Act provisions (including subsection 764A(1A)/(1B)) that affect interpretation of 'contract of insurance' and 'kind of cover'.","Selective application: the instrument changes application of multiple Parts of the Act (Parts 7.6 [with exceptions], 7.7–7.9), so practitioners must map which obligations remain.","Temporary lifespan (repeal scheduled 16 August 2030) and recorded amendments (2025/456) create time‑limited compliance planning and versioning complexity.","Operational ambiguity: terms like 'incidental' and 'no separate decision or election' invite fact‑specific assessments by issuers and advisers."],"plain_english_summary":"This instrument narrows when a general insurance cover is treated as a retail product by saying certain \"incidental\" covers bundled into a wholesale insurance contract are not retail. An incidental product is bundled with a wholesale product, is incidental to it, involves no separate choice or premium, and is not offered standalone. It changes which client protections and disclosure rules apply to insurers, distributors and buyers of bundled wholesale insurance, and it expires on 16 August 2030."},"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 its original narrow purpose: exempting incidental retail cover from retail client classification when bundled with wholesale products. The 2025 amendment appears to be a minor technical update (amending section 6, likely the repeal date or similar machinery provision) rather than an expansion of scope. The core 5-condition test remains unchanged from the 2022 original."},"complexity_factors":["Only 6 operative sections with minimal text","Single definition of 'incidental product' with 5 clear cumulative conditions","Simple modification structure: inserts one paragraph and one definition into existing Corporations Act section 761G","No nested exceptions or conditional logic beyond the 5-part test","Straightforward repeal date in Part 3","Cross-references limited to standard Corporations Act provisions (Parts 7.6-7.9, section 761G, section 764A)"],"plain_english_summary":"This instrument exempts certain small add‑on insurance covers bundled with commercial wholesale policies from being treated as “retail” — so they’re regulated as wholesale instead. It mainly affects insurers that include incidental covers in wholesale contracts, the business customers who receive them, and ASIC’s application of the Corporations Act.\n\nThe carve‑out depends on meeting five tests for “incidental” cover (not listed here) and prevents onerous retail disclosure and compliance for what are effectively ancillary, no‑cost protections. Expires 16 August 2030."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716","history":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716/history","analysis":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716/analysis","conflicts":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716/conflicts","importantCases":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716/important-cases","documents":"/api/acts/asic-corporations-incidental-retail-cover-instrument-2022-716/documents"}}