{"id":"F2019L01183","name":"ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2019/917","slug":"asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440226,"registerId":"F2019L01183-fast-fetch-1775955934666","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2019/917","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\ntitle: ASIC Template (Principal Legislative Instruments - Jan 2019)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2019/917\n\nI, Emma Curtis, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 12 September 2019\n\n \n\n \n\nEmma Curtis\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc19171792)\n\n[1 Name of legislative instrument](#_Toc19171793)\n\n[2 Commencement](#_Toc19171794)\n\n[3 Authority](#_Toc19171795)\n\n[4 Definitions](#_Toc19171796)\n\n[Part 2—Order](#_Toc19171797)\n\n[5 Short term credit facilities](#_Toc19171798)\n\n[6 Application](#_Toc19171799)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2019/917.\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 short term credit provider, has the meaning given by sections 11 and 15 of the Act.\n\ncollateral contract, in relation to a short term credit facility, means a separate contract between a retail client and a short term credit provider or an associate in relation to the short term credit facility.\n\ncollateral fees and charges means fees and charges imposed or provided for under a collateral contract.\n\nNational Credit Code has the same meaning as in subsection 5(1) of the National Consumer Credit Protection Act 2009.\n\nshort term credit facility means a financial product covered by both:\n\n(a) paragraph 12BAA(7)(k) of the ASIC Act; and\n\n(b) subsection 6(1) of the National Credit Code.\n\nshort term credit provider means a person who is purporting to rely on subsection 6(1) of the National Credit Code.\n\nPart 2—Order\n\n5 Short term credit facilities\n\n(1) A short term credit provider must not provide credit to a retail client under a short term credit facility except in accordance with the condition in subsection (5).\n\n(2)     A director of a short term credit provider must not cause or authorise the provider to provide credit to a retail client under a short term credit facility except in accordance with the condition in subsection (5).\n\n(3) A short term credit provider or an associate must not impose or provide for collateral fees and charges under a collateral contract except in accordance with the condition in subsection (5).\n\n(4) A director of a short term credit provider or of an associate must not cause or authorise the provider or associate to impose or provide for collateral fees and charges under a collateral contract except in accordance with the condition in subsection (5).\n\nCondition\n\n(5) The total of:\n\n(a) the amount of credit fees and charges that may be imposed or provided for under the short term credit facility; and\n\n(b) the amount of collateral fees and charges that may be imposed or provided for under a collateral contract;  \n\nmust not exceed the maximum amount of credit fees and charges permitted under subsection 6(1) of the National Credit Code in relation to the provision of credit under the short term credit facility.\n\n6 Application\n\nThis instrument applies in relation to a short term credit facility entered into on or after the commencement of this instrument.\n\n \n\n \n","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"},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument text confines itself to capping combined credit and collateral fees for short‑term credit facilities entered into after commencement and bases definitions on existing statutory provisions. There is no textual indication within the instrument that it expands or narrows scope beyond that stated purpose."},"complexity_factors":["Key concepts are defined by cross‑reference to other statutes (paragraph 12BAA(7)(k) of the ASIC Act and subsection 6(1) of the National Credit Code) (see definitions in s4).","The operative limit is set by reference to the National Credit Code maximum rather than within the instrument itself, requiring cross‑statute interpretation to calculate permitted amounts (s5(5)).","Obligations extend beyond the provider to directors and to associates and collateral contracts, expanding the set of actors who must ensure compliance (s5(1)‑(4), s4).","The instrument does not prescribe a formula or method for calculating the ‘amount of credit fees and charges’ or ‘collateral fees and charges’, creating potential ambiguity for compliance and internal accounting (s4, s5(5)).","Application is temporal: it only applies to short‑term credit facilities entered into on or after commencement; commencement is the second day after registration (s2, s6).","The instrument is a delegated ASIC order made under subsection 1023D(3) of the Corporations Act, so enforcement and interpretation rely on existing regulatory and legislative frameworks (s3)."],"plain_english_summary":"This ASIC order caps total fees on short‑term credit by requiring that the combined credit fees and collateral fees cannot exceed the maximum permitted under subsection 6(1) of the National Credit Code. It binds short‑term credit providers, their directors and associates, and applies to facilities entered into on or after commencement. Retail clients are the payees of fees; providers must change pricing and collateral contracts to ensure combined charges fall within the statutory cap."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument maintains its original narrow scope. It targets a specific regulatory arbitrage (fee splitting via collateral contracts) in the short-term credit market without expanding into broader consumer credit regulation. The scope aligns precisely with the product intervention power's purpose: addressing immediate consumer harm from a specific product feature."},"complexity_factors":["Only 6 sections total, with straightforward structure (Preliminary + Order)","7 defined terms in section 4, all with clear external references to existing legislation","Single operative condition in subsection 5(5) with simple arithmetic cap (fees + collateral fees ≤ statutory maximum)","No nested exceptions or conditional logic—prohibitions are absolute subject to the single cap condition","Minimal cross-referencing: only references to Corporations Act, ASIC Act, and National Credit Code for definitions","Clear temporal limitation (section 6) restricting application to post-commencement contracts"],"plain_english_summary":"This emergency intervention stops payday lenders and their associates from dodging short‑term loan fee caps by tacking on separate “collateral” contracts (insurance, memberships, processing fees). It treats those side‑contract charges as part of the loan cost so total fees cannot exceed the existing legal cap. It applies to new short‑term loans and targets lenders, related companies and directors — protecting consumers from hidden, cumulative fees."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917","history":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917/history","analysis":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917/analysis","conflicts":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917/conflicts","importantCases":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917/important-cases","documents":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2019-917/documents"}}