{"id":"F2018L00239","name":"ASIC Corporations (NZD Denominated Client Money) Instrument 2018/152","slug":"asic-corporations-nzd-denominated-client-money-instrument-2018-152","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":96871,"registerId":"commonwealth-F2018L00239-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (NZD Denominated Client Money) Instrument 2018/152","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (NZD Denominated Client Money) Instrument 2018/152\n\nAbout this compilation\n\nCompilation No. 1\n\nThis is a compilation of ASIC Corporations (NZD Denominated Client Money) Instrument 2018/152 as in force on 18 January 2023. It includes any commenced amendment affecting the legislative instrument to that date.\n\nThis compilation was prepared by the Australian Securities and Investments Commission.\n\nThe notes at the end of this compilation (the endnotes) include information\n\nabout amending instruments and the amendment history of each amended provision.\n\nContents\n\n[Part 1—Preliminary](#_Toc127177719)\n\n[1 Name of legislative instrument](#_Toc127177720)\n\n[3 Authority](#_Toc127177721)\n\n[4 Definitions](#_Toc127177722)\n\n[Part 2—Declaration](#_Toc127177723)\n\n[5 Relief from holding client money in an account with an Australian ADI](#_Toc127177724)\n\n[Endnotes](#_Toc127177725)\n\n[Endnote 1—Instrument history](#_Toc127177726)\n\n[Endnote 2—Amendment history](#_Toc127177727)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis instrument is ASIC Corporations (NZD Denominated Client Money) Instrument 2018/152.\n\n3 Authority\n\nThis instrument is made under paragraph 992B(1)(c) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nASX 24 market means the licensed market operated by Australian Securities Exchange Limited (ACN 000 943 377).\n\n  \n\nPart 2—Declaration\n\n5 Relief from holding client money in an account with an Australian ADI\n\nPart 7.8 of the Act applies in relation to an Australian financial services licensee that is a participant of the ASX 24 market as if section 981B were modified or varied by:\n\n(a) after subparagraph 981B(1)(a)(ii), inserting:\n\n“or\n\n(iii) if the money is ASX 24 NZD futures contract money or ASX NZD OTC clearing derivative money—with a bank that is incorporated in New Zealand and prudentially regulated by the Reserve Bank of New Zealand;”; and\n\n(b) after subsection 981B(2), inserting:\n\n“(3) In this section:\n\nASX 24 NZD futures contract means a New Zealand dollar-denominated futures contract quoted on the licensed market operated by Australian Securities Exchange Limited (ACN 000 943 377).\n\nASX 24 NZD futures contract money means money to which this Subdivision applies and in relation to which:\n\n(a) the financial service referred to in subparagraph 981A(1)(a)(i) is or relates to a dealing in an ASX 24 NZD futures contract; or\n\n(b) the financial product referred to in subparagraph 981A(1)(a)(ii) is an ASX 24 NZD futures contract.\n\nASX NZD OTC clearing derivative means a New Zealand dollar-denominated OTC derivative that is cleared or to be cleared by ASX Clear (Futures) Pty Limited (ACN 050 615 864).\n\nASX NZD OTC clearing derivative money means money to which this Subdivision applies and in relation to which:\n\n(a) the financial service referred to in subparagraph 981A(1)(a)(i) is or relates to a dealing in an ASX NZD OTC clearing derivative; or\n\n(b) the financial product referred to in subparagraph 981A(1)(a)(ii) is an ASX NZD OTC clearing derivative.\n\nOTC derivative means a derivative that is not able to be traded on a prescribed financial market.”.\n\n  \n\nEndnotes\n\nEndnote 1—Instrument history\n\n| Instrument number | Date of FRL registration     | Date of commencement | Application, saving or transitional provisions |\n| ----------------- | ---------------------------- | -------------------- | ---------------------------------------------- |\n| 2018/152          | 13/03/2018 (see F2018L00239) | 14/03/2018           | -                                              |\n| 2023/2            | 17/01/2023 (see F2023L00039) | 18/01/2023           | -                                              |\n\nEndnote 2—Amendment history\n\n> Note: ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted\n\n| Provision affected                                | How affected                               |\n| ------------------------------------------------- | ------------------------------------------ |\n| Section 2                                         | rep. s48D LA                               |\n| Section 5 (notional subparagraph 981B(1)(a)(iii)) | am. 2023/2 (F2023L00039) Schd. 1, item [1] |\n| Section 5 (notional subparagraph 981B(3))         | am. 2023/2 (F2023L00039) Schd. 1, item [2] |","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":true,"description":"The original 2018 instrument only covered ASX 24 NZD futures contract money. The 2023 amendment (Instrument 2023/2) expanded the scope to also cover ASX NZD OTC clearing derivatives, effectively doubling the types of financial products covered by the relief. While still tightly focused on NZD-denominated products on ASX markets, the instrument has grown beyond its original singular purpose."},"complexity_factors":["Very short instrument (only 5 substantive sections, effectively 1 operative provision)","Minimal defined terms (only 4 definitions in section 4, plus 4 notional definitions inserted by the modification)","Single, targeted modification to one section of the Corporations Act (981B)","No nested exceptions or complex conditional logic — the relief applies straightforwardly to two specific product types","Clear product scope: explicitly limited to NZD-denominated futures and OTC derivatives on ASX 24","Simple amendment history (one amending instrument in 2023 expanding the scope to include OTC derivatives)"],"plain_english_summary":"This instrument grants Australian financial services licensees an exemption from the usual requirement to hold client money in an Australian ADI for two NZD‑denominated products: ASX 24 NZD futures and ASX NZD OTC clearing derivatives. It lets eligible licensees hold client NZD with a Reserve Bank of New Zealand‑prudentially regulated NZ bank. \n\nIt affects Australian brokers/clearing participants, their clients trading NZD derivatives, and qualifying NZ banks, and removes currency‑conversion and operational frictions in trans‑Tasman derivatives trading."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"Yes. The 2023 amendment expanded and clarified the relief by varying section 981B to allow specified NZD client money to be held with a bank incorporated in New Zealand and prudentially regulated by the Reserve Bank of New Zealand, and by adding tailored definitions for ASX 24 NZD futures contracts and ASX NZD OTC clearing derivatives (see section 5 and Endnote 2)."},"complexity_factors":["Narrow, targeted amendment: modifies application of Part 7.8 by varying section 981B to permit a specific cross‑border exception (section 5).","Introduces new cross‑border eligibility test: client money may be held with a bank incorporated in New Zealand and prudentially regulated by the Reserve Bank of New Zealand (section 5(a)).","Adds detailed definitions for covered products (ASX 24 NZD futures contract, ASX NZD OTC clearing derivative) that licensees must apply when classifying client money (section 5(b)).","Scope limited to participants of the ASX 24 market (definition of ASX 24 market in section 4), so applicability is narrow but operationally specific.","Requires licensees to map existing client‑money obligations under Part 7.8 to the new exception, creating an operational and compliance task to verify banks meet the NZ prudential requirement (interaction with Part 7.8 and inserted subparagraph).","Relies on foreign prudential supervision (Reserve Bank of New Zealand), which creates verification and monitoring obligations for Australian licensees and potential supervisory mismatch.","Recent amendment history (2023/2) altered the notional subparagraph and definitions, so implementers must track changes and apply them to current processes (Endnote 2)."],"plain_english_summary":"This instrument lets Australian financial services licensees that participate in the ASX 24 market hold New Zealand dollar client money with a bank incorporated and prudentially regulated in New Zealand, instead of requiring an Australian ADI. It specifically covers NZD futures traded on ASX 24 and NZD OTC derivatives cleared by ASX Clear (Futures). It affects ASX 24 participants, their clients and the banks that will hold those client funds because it changes where and under what regulatory conditions those funds may be kept."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152","history":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152/history","analysis":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152/analysis","conflicts":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152/conflicts","importantCases":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152/important-cases","documents":"/api/acts/asic-corporations-nzd-denominated-client-money-instrument-2018-152/documents"}}