{"id":"F2024L00376","name":"ASIC Corporations (mFund) Instrument 2024/18","slug":"asic-corporations-mfund-instrument-2024-18","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442342,"registerId":"F2024L00376-fast-fetch-1775957368802","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (mFund) Instrument 2024/18","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: Mfund legislative instrument - comparison document - ag comments (004)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (mFund) Instrument 2024/18\n\nI, Kate Metz, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 21 March 2024\n\n \n\n \n\nKate Metz\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc161829916)\n\n[1 Name of legislative instrument](#_Toc161829917)\n\n[2 Commencement](#_Toc161829918)\n\n[3 Authority](#_Toc161829919)\n\n[4 Definitions](#_Toc161829920)\n\n[Part 2—Exemption](#_Toc161829921)\n\n[5 Exemption in relation to an electronic application made through mFund](#_Toc161829922)\n\n[6 Conditions](#_Toc161829923)\n\n[7 Application where there is a Supplementary Product Disclosure Statement](#_Toc161829924)\n\n[Part 3—Declaration](#_Toc161829925)\n\n[8 Requirements before transmitting an electronic application through mFund](#_Toc161829926)\n\n[Part 4—Repeal](#_Toc161829927)\n\n[9 Repeal](#_Toc161829928)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (mFund) Instrument 2024/18.\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 paragraphs 1020F(1)(a) and (c) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nASX means ASX Limited ACN 008 624 691.\n\nASX Operating Rules means the operating rules of the financial market operated by ASX on 21 March 2024.\n\nASX Settlement means ASX Settlement Pty Limited ACN 008 504 532.\n\nASX Settlement Operating Rules mean the operating rules of the clearing and settlement facility operated by ASX Settlement on 21 March 2024.\n\ndefective has the same meaning as in subsection 1016A(1) of the Act.\n\nmFund means the facility that is operated by ASX and ASX Settlement and that is called, or has been called, the “ASX Managed Fund Settlement Service”.\n\n\n\n\nPart 2—Exemption\n\n5 Exemption in relation to an electronic application made through mFund\n\n(1) A responsible entity of a registered scheme does not have to comply with subsection 1016A(2) of the Act in relation to the issue of an interest in the scheme to a person (acquirer) in response to an electronic application made to the responsible entity on behalf of the acquirer through mFund.\n\n(2) The exemption in subsection (1) applies where:\n\n(a) the application made through mFund contained or was accompanied by an electronic confirmation that a Product Disclosure Statement for the interest with a specified date has been given to the acquirer by a financial services licensee or an authorised representative of a financial services licensee; and\n\n(b) the Product Disclosure Statement referred to in the confirmation:\n\n(i) has been prepared by the responsible entity; and\n\n(ii) was not defective as at the time when the application was made; and\n\n(c) the responsible entity has no reason to believe that the requirements of the ASX Operating Rules and ASX Settlement Operating Rules have not been satisfied in relation to the application and the confirmation; and\n\n(d) the responsible entity reasonably believes that the Product Disclosure Statement referred to in the confirmation was available free of charge on the website of ASX as at the time the application was made; and\n\n(e) mFund is the subject of an exemption under section 791C of the Act.    \n\n6 Conditions\n\n A responsible entity that relies on the exemption in section 5 must:\n\n(a) within 5 business days after the issue of the interest notify the acquirer in writing that:\n\n(i) there is a Product Disclosure Statement with the date specified in the electronic confirmation in relation to the acquirer’s application that has information about the interest that should have been given to the acquirer; and\n\n(ii) if the acquirer has not received that Product Disclosure Statement, the acquirer should inform the responsible entity, and the acquirer may obtain an electronic or paper copy from the responsible entity free of charge; and\n\n(b) notify ASX in writing within 10 business days if it has reason to believe that a person who acquired an interest in the scheme as a retail client as a result of an application through mFund had not been given, before making the application, the Product Disclosure Statement for the interest that was specified in the electronic confirmation in relation to the application; and\n\n(c) keep for 7 years:\n\n(i) records demonstrating that it has complied with the requirements of paragraph 6(a); and\n\n(ii) a copy of all applications received through mFund; and\n\n(iii) a record of any statement by an acquirer that states or implies that the acquirer was not given, before applying through mFund, the Product Disclosure Statement that was specified in the electronic confirmation in relation to the acquirer’s application.\n\n7 Application where there is a Supplementary Product Disclosure Statement\n\n         Sections 5 and 6 (other than subparagraph 5(2)(b)(ii)) apply in relation to a Product Disclosure Statement that has been supplemented by one or more Supplementary Product Disclosure Statements as if:\n\n(a) a reference to a Product Disclosure Statement were a reference to a Product Disclosure Statement and each Supplementary Product Disclosure Statement which supplements it; and\n\n(b) a reference to the date of a Product Disclosure Statement were a reference to the date of the most recent Supplementary Product Disclosure Statement that supplements it.\n\nNote:  In determining whether a Product Disclosure Statement is defective for the purposes of subparagraph 5(2)(b)(ii), information in a Supplementary Product Disclosure Statement that supplements the Product Disclosure Statement is taken to be contained in the Product Disclosure Statement: see the definition of defective in subsection 1016A(1) of the Act.\n\n\n\n\nPart 3—Declaration\n\n8 Requirements before transmitting an electronic application through mFund\n\nPart 7.9 of the Act applies in relation to a financial services licensee who, or whose authorised representative, transmits an electronic application for the issue of an interest in a registered scheme through mFund as if that Part were modified or varied by, after subsection 1016A(2), inserting:\n\n“(2A) A financial services licensee must:\n\n(a) not transmit an electronic application for the issue of an interest in a registered scheme to a person unless; and\n\n(b) ensure that an authorised representative of the financial services licensee does not transmit such an application unless the financial services licensee has done all things reasonably necessary to ensure that;\n\neach of the following are satisfied:\n\n(c) the financial services licensee or its authorised representative (as applicable) has:\n\n(i) given the person a Product Disclosure Statement for the interest; or\n\n(ii) been notified in writing by another financial services licensee or authorised representative (each the second providing licensee or representative) that the second providing licensee or representative has given the person a Product Disclosure Statement for the interest;\n\n(d) the date of the Product Disclosure Statement is specified in an electronic statement forming part of or accompanying the application;\n\n(e) the date of the Product Disclosure Statement is the date of the most recent Product Disclosure Statement for the interest that is available on the website of ASX Limited as at the time the application is made.\n\nNote:  A person who offers to arrange for the issue of an interest in a registered scheme to a person as a retail client is required to give a Product Disclosure Statement to the person before making the offer: section 1012B.\n\n(2B) Subsection (2A) does not apply where the financial services licensee or its authorised representative believes on reasonable grounds that an issue is not a restricted issue.\n\n(2C) Subsection (2A) applies in relation to a Product Disclosure Statement that has been supplemented by one or more Supplementary Product Disclosure Statements as if:\n\n(a) a reference to a Product Disclosure Statement were a reference to a Product Disclosure Statement and each Supplementary Product Disclosure Statement which supplements it; and\n\n(b) a reference to the date of a Product Disclosure Statement were a reference to the date of the most recent Supplementary Product Disclosure Statement that supplements it.”.\n\n\n\n\nPart 4—Repeal\n\n9 Repeal\n\nThis instrument is repealed at the start of 1 April 2029.\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument maintains its original narrow scope — facilitating electronic applications for managed funds through the mFund settlement service while ensuring investor protection through alternative disclosure pathways. It does not expand beyond the mFund context or create broader exemptions."},"complexity_factors":["Multiple cross-references to the Corporations Act 2001 (sections 1016A, 1012B, 791C, Part 7.9)","Conditional logic with 5 separate conditions in section 5(2) that must all be satisfied","Nested modification of legislation via 'as if' insertion in Part 3 (creating subsections 1016A(2A), (2B), (2C))","Interaction between primary instrument and Supplementary Product Disclosure Statements requiring special interpretation rules","Dual obligations on different parties (responsible entities vs financial services licensees) with different timeframes (5 vs 10 business days)","Sunset clause with automatic repeal date (1 April 2029)"],"plain_english_summary":"This instrument lets managed‑fund interests bought electronically through ASX’s mFund settle without the fund first issuing a Product Disclosure Statement (PDS). It shifts certain disclosure steps to brokers/advisers (who must confirm a PDS was provided), requires the PDS be freely available on ASX, and obliges funds to notify investors within 5 business days and ASX within 10 days if a retail client likely didn’t receive a PDS. It applies only while mFund keeps its s.791C exemption."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"No earlier instrument or prior text was provided for comparison, so change from an 'original' scope cannot be determined from this document alone. The instrument, as drafted, limits its effect to electronic applications transmitted through ASX’s mFund: it creates a targeted exemption from subsection 1016A(2) for responsible entities subject to conditions and recordkeeping (Part 2), imposes verification duties on financial services licensees transmitting applications (Part 3), and is time‑limited to repeal on 1 April 2029 (Part 4)."},"complexity_factors":["Cross‑references to multiple Corporations Act provisions and concepts (subsection 1016A(2), definition of 'defective' in subsection 1016A(1), section 791C, Part 7.9, section 1012B) create dependency on external statutory meanings and thresholds (see s3, s5(1)–(2), s7, s8).","Reliance on external ASX documents and rule sets fixed to a date (ASX Operating Rules and ASX Settlement Operating Rules as at 21 March 2024) introduces operational dependency on non‑statutory instruments (see Definitions and s5(2)(c)).","Multiple substantive conditions for the exemption (electronic confirmation of PDS, PDS prepared by the responsible entity and not defective, availability on ASX website, ASX s791C exemption) raise factual and compliance complexity for responsible entities (see s5(2)(a)–(e)).","Notification and retention obligations create ongoing administrative burdens: written notification to acquirers within 5 business days, notification to ASX within 10 business days if failures are suspected, and 7 years’ record retention including copies of mFund applications (see s6(a)–(c)).","Modification of financial services licensee duties via an inserted subsection into Part 7.9 imposes pre‑transmission verification duties, an exception where an issue is not 'restricted', and rules for Supplementary PDSs — this alters intermediary practices and due‑diligence checks (see s8(2A)–(2C)).","Interplay with Supplementary Product Disclosure Statements affects timing and ‘defective’ assessments, requiring integrative interpretation across documents (see s7 and the Note referencing subsection 1016A(1)).","Time‑limited nature (automatic repeal 1 April 2029) means compliance systems must track sunset timing and any successor arrangements (see s9)."],"plain_english_summary":"**This instrument lets responsible entities rely on an electronic confirmation via ASX’s `mFund` instead of immediately supplying a Product Disclosure Statement when issuing scheme interests, provided specified conditions are met and certain notifications and records are kept.**\n\nIt also requires financial services licensees to verify PDS provision before transmitting mFund applications, ties compliance to ASX/ASX Settlement rules and Corporations Act cross‑references, and expires on 1 April 2029."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-mfund-instrument-2024-18","history":"/api/acts/asic-corporations-mfund-instrument-2024-18/history","analysis":"/api/acts/asic-corporations-mfund-instrument-2024-18/analysis","conflicts":"/api/acts/asic-corporations-mfund-instrument-2024-18/conflicts","importantCases":"/api/acts/asic-corporations-mfund-instrument-2024-18/important-cases","documents":"/api/acts/asic-corporations-mfund-instrument-2024-18/documents"}}