{"id":"F2022L00976","name":"ASIC Corporations (Product Intervention Order—Continuing Credit Contracts) Instrument 2022/648","slug":"asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441469,"registerId":"F2022L00976-fast-fetch-1775956749358","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Product Intervention Order—Continuing Credit Contracts) Instrument 2022/648","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-description: \"Attachment 2 to CP 355: Draft legislative instrument\"\nmeta-generator: Aspose.Words for .NET 22.10.0\nmeta-keywords: \"Attachment 2 to CP 355: Draft legislative instrument\"\ntitle: \"Attachment 2 to CP 355: Draft legislative instrument\"\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Product Intervention Order—Continuing Credit Contracts) Instrument 2022/648\n\nI, Greg Yanco, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\nDate 13 July 2022\n\n \n\n \n\nGreg Yanco\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc108449621)\n\n[1 Name of legislative instrument](#_Toc108449622)\n\n[2 Commencement](#_Toc108449623)\n\n[3 Authority](#_Toc108449624)\n\n[4 Definitions](#_Toc108449625)\n\n[Part 2—Order](#_Toc108449626)\n\n[5 Continuing credit contracts](#_Toc108449627)\n\n[6 Application](#_Toc108449628)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Product Intervention Order—Continuing Credit Contracts) Instrument 2022/648.\n\n2 Commencement\n\nThis instrument commences on a day that is the second day after the instrument 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 subsection 1023D(3) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nassociate, in relation to a primary person that is a continuing credit provider, has the meaning given by sections 11 and 15 of the Act.\n\nbuy now pay later arrangement means an arrangement or series of arrangements comprising:\n\n(a) an arrangement between a person (the merchant) and another person (the retail client) in relation to the supply of goods or services by the merchant to the retail client; and\n\n(b) any of the following:\n\n(i)  an arrangement between the merchant and a person (the BNPL provider) in relation to which the BNPL provider pays the merchant some or all of the price for the supply of those goods or services to the retail client;\n\n(ii)  an arrangement between the retail client and a person (the BNPL provider) in relation to which, when the retail client is required to pay the merchant for the supply of those goods or services, the retail client pays the merchant some or all of the price by using a credit card or debit card identifier provided or made available by the BNPL provider to the retail client for such a purpose;\n\n \n\n(iii) an arrangement between the retail client and a person (the BNPL provider) in relation to which the BNPL provider pays, through a bill payment system specified by the merchant, some or all of a bill issued by the merchant to the retail client for the supply of those goods or services to the retail client; and\n\nNote:  For example, the bill payment system may be the BPAY bill payment system.\n\n(c) an arrangement between the BNPL provider and the retail client which includes a continuing credit contract in relation to which the retail client pays the BNPL provider over time in relation to the supply of those goods or services;\n\nbut only where the principal business of the merchant is not the supply of administration, brokerage, management, collection, recovery or other services in relation to the provision of credit under continuing credit contracts.\n\ncollateral contract, in relation to a continuing credit contract, means a separate contract between a retail client and a continuing credit provider, or an associate, in relation to the continuing credit contract, including (without limitation) a contract or arrangement for the continuing credit provider or an associate to provide services to the retail client in relation to the continuing credit contract.\n\ncollateral non-cash payment facility, in relation to a continuing credit contract, means a non-cash payment facility operating in relation to a continuing credit contract where the issuer of the non-cash payment facility is the holder of an Australian financial services licence covering the provision of financial services in relation to the non-cash payment facility.\n\ncontinuing credit contract means a contract, arrangement or understanding covered by paragraph 12BAA(7)(k) of the Australian Securities and Investments Commission Act 2001under which:\n\n(a) multiple advances of credit are contemplated; and\n\n(b) the amount of available credit ordinarily increases as the amount of credit is reduced.\n\ncontinuing credit provider means a person who is purporting to rely on subsection 6(5) of the National Credit Code in relation to a continuing credit contract.\n\ncontract includes a series or combination of contracts, or contracts, arrangements and understandings.\n\nmakes non-cash payments has the meaning given by section 763D of the Act.\n\nNational Credit Code has the same meaning as in subsection 5(1) of the National Consumer Credit Protection Act 2009.\n\nnon-cash payment facility means a facility through which, or through the acquisition of which, a person makes non-cash payments.\n\nPart 2—Order\n\n5 Continuing credit contracts\n\n(1) A continuing credit provider must not provide credit to a retail client under a continuing credit contract except in accordance with the condition in subsection (5).\n\n(2) A director of a continuing credit provider must not cause or authorise the provider to provide credit to a retail client under a continuing credit contract except in accordance with the condition in subsection (5).\n\n(3) A continuing credit provider or an associate must not impose or provide for fees and charges under a collateral contract in relation to a continuing credit contract except in accordance with the condition in subsection (5).\n\n(4) A director of a continuing credit provider or of an associate must not cause or authorise the provider or associate to impose or provide for fees and charges under a collateral contract in relation to a continuing credit contract except in accordance with the condition in subsection (5).\n\nCondition\n\n(5) The total of:\n\n(a) the amount of fees and charges that may be imposed or provided for under the continuing credit contract; and\n\n(b) the amount of fees and charges that:\n\n(i)  may be imposed or provided for under:\n\n(A) a collateral contract (other than a collateral non-cash payment facility); or\n\n(B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the continuing credit contract (except for a fee or charge already counted under paragraph (a)); and\n\n(ii) are paid or payable by a retail client;\n\nmust not exceed the maximum charge permitted under subsection 6(5) of the National Credit Code or regulations made for the purposes of that subsection.\n\n6 Application\n\n(1) This instrument applies in relation to a continuing credit contract entered into on or after the commencement of this instrument.\n\n(2) For the avoidance of doubt, where a continuing credit provider is not purporting to rely on subsection 6(5) of the National Credit Code in relation to a continuing credit contract, subsections 5(1) to (4) of this instrument do not apply in relation to the contract.\n\n(3) This instrument does not apply in relation to a continuing credit contract if:\n\n(a) the continuing credit contract forms a part of a buy now pay later arrangement; and\n\n(b) each advance of credit under the continuing credit contract occurs as a result of the buy now pay later arrangement.\n\nNote 1: The application of the orders in section 5 is subject to the limitations in section 1023C of the Act.\n\nNote 2: Subject to the Court making an order staying or otherwise affecting the operation of the orders in section 5, the orders will remain in force for 18 months from the day this instrument commences: see subsection 1023G(2) of the Act.\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: capping fees for continuing credit contracts relying on the National Credit Code exemption. The BNPL carve-out in section 6(3) is a deliberate boundary-setting exercise to avoid scope creep into the rapidly evolving buy-now-pay-later sector, rather than an expansion beyond the original intent."},"complexity_factors":["Multiple defined terms (11 definitions in section 4), including nested definitions like 'buy now pay later arrangement' with three alternative structural pathways","Cross-references to external legislation: Corporations Act 2001 (sections 11, 15, 763D, 1023C, 1023D, 1023G), ASIC Act (paragraph 12BAA(7)(k)), National Consumer Credit Protection Act 2009, and National Credit Code (subsection 6(5))","Conditional application logic in section 6 with explicit exclusions and a 'for the avoidance of doubt' clarification","Complex fee-capping calculation in subsection 5(5) requiring aggregation across multiple contract types while avoiding double-counting","Personal liability imposed on directors (subsections 5(2) and 5(4)) creating parallel liability structures"],"plain_english_summary":"ASIC has issued an 18‑month product‑intervention order capping fees charged by continuing credit providers that rely on the National Credit Code’s subsection 6(5) exemption. It blocks fee‑stacking through the main credit contract or linked collateral contracts, protecting consumers and exposing providers and directors to liability.\n\nThe order excludes BNPL arrangements that advance credit through their BNPL structure. It’s a temporary emergency measure while ASIC assesses whether permanent rules are needed."},"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":3,"scope_assessment":{"changed":true,"description":"The instrument imposes a new, enforceable prohibition that narrows permissible conduct for continuing credit providers by capping total fees payable by retail clients to the maximum under subsection 6(5) of the National Credit Code (see section 5(5)). It applies only to new contracts from commencement (section 6(1)), excludes specified BNPL arrangements (section 6(3)), and is constrained by the Corporations Act product‑intervention limits (notes referencing sections 1023C and 1023G)."},"complexity_factors":["Key rule is a single numerical cap tied to subsection 6(5) of the National Credit Code, requiring cross‑reference to another statute.","Definitions include a multi‑part \"buy now pay later arrangement\" with several alternative triggers (merchant arrangements, card identifiers, bill payment systems).","Multiple regulated actors: continuing credit providers, their directors and associates, and providers of collateral contracts (including non‑cash payment facilities).","Interaction between primary continuing credit contract and collateral contracts (fees may be counted across both).","Application limits: only applies to contracts entered after commencement, excludes certain BNPL-linked advances, and only applies where the provider purports to rely on subsection 6(5).","Temporal and statutory limits referenced (subject to sections 1023C and 1023G of the Corporations Act), so duration and scope depend on those provisions."],"plain_english_summary":"This instrument stops continuing credit providers (and their directors or associates) from making advances or charging fees under continuing credit contracts unless the total fees a retail client pays do not exceed the maximum allowed by subsection 6(5) of the National Credit Code. \n\nIt applies to continuing credit contracts entered on or after commencement, excludes certain buy‑now‑pay‑later arrangements and contracts where the provider is not relying on subsection 6(5), and operates as an ASIC product‑intervention order under the Corporations Act."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648","history":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648/history","analysis":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648/analysis","conflicts":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648/conflicts","importantCases":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648/important-cases","documents":"/api/acts/asic-corporations-product-intervention-order-continuing-credit-contracts-instrument-2022-648/documents"}}