{"id":"F2022L00975","name":"ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2022/647","slug":"asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441468,"registerId":"F2022L00975-fast-fetch-1775956749357","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 2022/647","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-description: \"Attachment 1 to CP 355: Draft legislative instrument\"\nmeta-generator: Aspose.Words for .NET 22.10.0\nmeta-keywords: \"Attachment 1 to CP 355: Draft legislative instrument\"\ntitle: \"Attachment 1 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—Short Term Credit) Instrument 2022/647\n\nI, Greg Yanco , delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 13 July 2022\n\n \n\n \n\nGreg Yanco\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc108449672)\n\n[1 Name of legislative instrument](#_Toc108449673)\n\n[2 Commencement](#_Toc108449674)\n\n[3 Authority](#_Toc108449675)\n\n[4 Definitions](#_Toc108449676)\n\n[Part 2—Order](#_Toc108449677)\n\n[5 Short term credit facilities](#_Toc108449678)\n\n[6 Application](#_Toc108449679)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2022/647.\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, including (without limitation) a contract or arrangement for the short term credit provider or an associate to provide services to the retail client in relation to the short term credit facility.\n\ncontract includes a series or combination of contracts, or contracts, arrangements and understandings.\n\ncredit fees and charges has the same meaning as in subsection 6(1) of the National Credit Code (as affected by subsections 6(2) and (3) of the National Credit Code).\n\ninterest charges include, for the avoidance of doubt, default interest charges.\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 contract, arrangement or understanding covered by both:\n\n(a) paragraph 12BAA(7)(k) of the Australian Securities and Investments Commission Act 2001; 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 in relation to a short term credit facility.\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 conditions in subsections (5) and (6).\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 conditions in subsections (5) and (6).\n\n(3) A short term credit provider or an associate must not impose or provide for fees and charges under a collateral contract in relation to a short term credit facility except in accordance with the conditions in subsections (5) and (6).\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 fees and charges under a collateral contract in relation to a short term credit facility except in accordance with the conditions in subsections (5) and (6).\n\nConditions\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 fees and charges (excluding interest charges) that:\n\n(i) may be imposed or provided for under:\n\n(A) a collateral contract; or\n\n(B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the short term credit facility (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 amount of credit fees and charges permitted under subsection 6(1) of the National Credit Code.\n\n(6) The total of:\n\n(a) the amount of interest charges that may be imposed or provided for under the short term credit facility; and\n\n(b) the amount of interest charges that:\n\n(i) may be imposed or provided for under:\n\n(A) a collateral contract; or\n\n(B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the short term credit facility (except for an interest charge already counted under paragraph (a)); and\n\n(ii) are paid or payable by a retail client;\n\nmust not exceed the maximum amount of interest charges permitted under subsection 6(1) of the National Credit Code.\n\n6 Application\n\n(1)  This instrument applies in relation to a short term credit facility entered into on or after the commencement of this instrument.\n\n(2)  For the avoidance of doubt, where a short term credit provider is not purporting to rely on subsection 6(1) of the National Credit Code in relation to a short term credit facility, subsections 5(1) to (4) of this instrument do not apply in relation to the facility.\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":{"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":4,"scope_assessment":{"changed":false,"description":"This instrument appears tightly scoped to its original purpose. It targets a specific identified problem (fee avoidance through collateral contracts in short-term credit) using ASIC's product intervention powers. The scope matches the regulatory intent described in the consultation paper reference (CP 355) and does not appear to have expanded beyond addressing the subsection 6(1) exemption exploitation."},"complexity_factors":["Relatively short instrument (6 sections total)","8 defined terms in section 4, but most are straightforward cross-references to existing legislation","Nested conditional logic in subsections 5(5) and 5(6) requiring aggregation of fees across multiple contract types","Cross-references to external legislation: Corporations Act 2001, ASIC Act 2001, National Consumer Credit Protection Act 2009, and National Credit Code","Dual targeting structure: applies to both the provider/associate AND their directors (doubling the prohibitions)","Temporal limitation: 18-month sunset clause referenced in Note 2 (subsection 1023G(2) of the Act)","Exception in section 6(2) creating a safe harbour for providers not relying on the specific National Credit Code exemption"],"plain_english_summary":"Emergency ASIC intervention temporarily bars payday-style lenders from using side contracts to evade consumer credit caps. It treats fees and interest across main loans and collateral arrangements as a single total, applying caps and holding lenders, directors and associates responsible.\n\nThe 18‑month measure protects ordinary consumers from exploitative charges while broader reforms are considered."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument does not alter the substantive maximums in the National Credit Code. It clarifies and enforces those caps by requiring aggregation of fees and interest across the short term credit facility and related collateral contracts, and by extending prohibitions to providers, their associates and directors for facilities entered after commencement (see s5; s6). The order is time‑limited (note to s6)."},"complexity_factors":["Aggregate cap: requires combining fees and interest across the principal short term credit facility and any collateral contracts to compare with the National Credit Code caps (s5(5)–(6))","External statutory reference: enforces maximums set by subsection 6(1) of the National Credit Code, requiring cross‑statute computation and familiarity with the Code","Definitions reference other provisions: 'short term credit facility' points to paragraph 12BAA(7)(k) of the ASIC Act and the National Credit Code, so scope depends on multi‑source interpretation (s4)","Director and associate reach: prohibits directors from causing or authorising non‑compliant conduct and extends obligations to associates, increasing corporate compliance obligations (s5(2), (4))","Application condition: instrument applies only where the provider purports to rely on subsection 6(1) of the National Credit Code, so firms must assess whether they fall within that reliance (s6(2))","Temporal and judicial limits: operation is time‑limited and subject to Court stays under the Act, affecting enforcement certainty (notes to s6; see s1023G and s1023C references)","Associate identification: 'associate' uses sections 11 and 15 of the Corporations Act, requiring firms to identify related parties to determine coverage (s4)"],"plain_english_summary":"This instrument stops short‑term credit providers, their directors and associates from charging combined fees or interest on a short‑term credit facility (including related collateral contracts) that exceed the maximums in subsection 6(1) of the National Credit Code (see s5(5)–(6); s6). It applies to facilities entered after commencement and only when the provider is relying on the National Credit Code cap, so providers must aggregate charges across connected contracts and ensure director-level compliance (see s6(1); s5(1)–(4))."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647","history":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647/history","analysis":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647/analysis","conflicts":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647/conflicts","importantCases":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647/important-cases","documents":"/api/acts/asic-corporations-product-intervention-order-short-term-credit-instrument-2022-647/documents"}}