{"id":"F2021L00349","name":"ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194","slug":"asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440802,"registerId":"F2021L00349-fast-fetch-1775956305510","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: ASIC Margin Relief for Exchange Traded Instalment Warrants Declaration Instrument 2021194\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194\n\nI, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 24 March 2021\n\n \n\n \n\n \n\nAnthony Graham\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc67497668)\n\n[1 Name of legislative instrument](#_Toc67497669)\n\n[2 Commencement](#_Toc67497670)\n\n[3 Authority](#_Toc67497671)\n\n[4 Definitions](#_Toc67497672)\n\n[Part 2—Declaration](#_Toc67497673)\n\n[5 Terms of the Declaration](#_Toc67497674)\n\n[Part 3—Repeal](#_Toc67497675)\n\n[6 Repeal](#_Toc67497676)\n\n \n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194.\n\n2 Commencement\n\nThis instrument commences on the later of:\n\n(a) the day after it is registered on the Federal Register of Legislation; and\n\n(b)  1 April 2021.\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 761EA(9) of the Corporations Act 2001 (the Act).\n\n4 Definitions\n\nIn this instrument:\n\nAustralian domestic market licensee means a person who is a market licensee because of subsection 795B(1) or 1413(2) of the Act.\n\ninstalment warrant means a financial product that is a security or an interest in a managed investment product under the terms of which:\n\n(a) credit is provided by the issuer to the person (the client) acquiring the financial product; and\n\n(b) the credit is applied to acquire one or more marketable securities (the underlying asset), which may include applying the credit to pay for expenses incurred in connection with providing the credit or acquiring the underlying asset; and\n\n(c) the underlying asset is held on trust so that the client acquires a beneficial interest in the underlying asset; and\n\n(d) the client has a right to acquire legal ownership of the underlying asset by making one or more payments after acquiring the beneficial interest; and\n\n(e) the rights of the issuer, or any other person, against the client are limited to rights relating to the underlying asset.\n\nPart 2—Declaration\n\n5 Terms of the Declaration\n\nASIC declares that a facility that is an instalment warrant:\n\n(a) that is in a class of financial products that are admitted to quotation on a licensed market operated by an Australian domestic market licensee; and\n\n(b) that is issued by a financial services licensee; and\n\n(c) that is a standard margin lending facility;\n\nis not a margin lending facility.\n\nNote: This declaration does not have the effect that an instalment warrant covered by this declaration is not a financial product.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed on 1 April 2026.\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 consistent with its title and purpose. It provides specific relief for exchange-traded instalment warrants only, without expanding to cover other products or creating broader exemptions. The sunset clause (repeal in 2026) confirms this is a time-limited, purpose-specific regulatory relief measure rather than a creeping expansion of scope."},"complexity_factors":["Short length: only 6 operative sections across 3 Parts","Single defined term in section 4 ('Australian domestic market licensee') plus a detailed definition of 'instalment warrant' that unpacks 5 specific criteria","No cross-references to other legislation beyond the empowering provision (Corporations Act s 761EA(9)) and standard definitional references (ss 795B(1), 1413(2))","Simple conditional structure: one declaration in section 5 with three cumulative conditions (paragraphs (a), (b), (c))","No nested exceptions or sub-exceptions","Automatic repeal mechanism in section 6 (sunset clause) — straightforward temporal limitation","Relies on external statutory definitions ('standard margin lending facility', 'financial services licensee', 'marketable securities') rather than defining them internally"],"plain_english_summary":"This instrument carves out exchange-traded instalment warrants from being treated as margin lending facilities under the Corporations Act — so, where such warrants meet specified market-listing and issuer criteria, issuers and investors avoid the margin-lending licensing and disclosure overlay. It affects warrant issuers, retail investors and market operators and provides regulatory relief while retaining other financial-product protections. The exemption expires on 1 April 2026."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument narrows the practical scope of what counts as a 'margin lending facility' by excluding a defined subset of exchange‑traded instalment warrants from that label (see s5). It does not remove their status as financial products (s5 note) and the exclusion is temporary, expiring on 1 April 2026 (s6)."},"complexity_factors":["Short, targeted declaratory relief rather than broad statutory amendment (authority: s3—made under subsection 761EA(9)).","Relief depends on product characteristics and market admission, so application requires factual assessment of product structure and quotation status (definition of instalment warrant: s4; relief terms: s5).","Preserves financial product status (s5 note), creating potential for divergent regulatory regimes and interpretive questions about which rules still apply.","Time‑limited nature creates recurring compliance/monitoring obligations for firms to track expiry and future treatment (s6—repeal 1 April 2026).","Legal effect turns on interconnected statutory definitions (Australian domestic market licensee; financial services licensee) which may require cross‑referencing other Corporations Act provisions (s4, s5).","Decision made by an ASIC delegate introduces administrative discretion in scope and future use of similar declarations (s3)."],"plain_english_summary":"This ASIC instrument declares that certain exchange‑traded instalment warrants quoted on licensed Australian markets and issued by financial services licensees are not to be treated as \"margin lending facilities\" for Corporations Act purposes. The change is procedural: it alters which regulatory rules apply to affected issuers, market operators and investors (while retaining the instruments' status as financial products); ASIC's delegate made the declaration under subsection 761EA(9) and it expires on 1 April 2026."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194","history":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194/history","analysis":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194/analysis","conflicts":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194/conflicts","importantCases":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194/important-cases","documents":"/api/acts/asic-corporations-margin-lending-relief-for-exchange-traded-instalment-warrants-instrument-2021-194/documents"}}