{"id":"F2016L01866","name":"ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151","slug":"asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95531,"registerId":"commonwealth-F2016L01866-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151","content":"![](image.001.jpeg)\n\nASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151\n\nAbout this compilation\n\nCompilation No. 1\n\nThis is a compilation of ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151 as in force on 27 May 2017. 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](#_Toc483402743)\n\n[1 Name of legislative instrument](#_Toc483402744)\n\n[3 Authority](#_Toc483402745)\n\n[4 Definitions](#_Toc483402746)\n\n[Part 2—Declaration](#_Toc483402747)\n\n[5 Exempt service](#_Toc483402748)\n\n[Endnotes](#_Toc483402749)\n\n[Endnote 1—Instrument history](#_Toc483402750)\n\n[Endnote 2—Amendment history](#_Toc483402751)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151.\n\n3 Authority\n\nThis instrument is made under subsection 926A(2) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nlimited licensee has the meaning given by subsection 912A(4) of the Act (as notionally inserted by subregulation 7.6.01BA(3) of the Regulations).\n\nRegulations means the Corporations Regulations 2001.\n\nPart 2—Declaration\n\n5 Exempt service\n\nPart 7.6 of the Act (other than Divisions 4 and 8) applies in relation to financial services licensees (including limited licensees) as if regulation 7.1.29 of the Regulations was modified or varied as follows:\n\n(a) after paragraph (4)(a) insert:\n\n“(aa) if the person is a financial services licensee (including a limited licensee) or a representative of a licensee—the advice mentioned in paragraph (a):\n\n(i) in relation to the licensee or the representative—is not covered by an authorisation in the licence held by the licensee; or\n\n(ii) in relation to the representative—is not covered by the authorisation given by the licensee to the representative; and”;\n\n(b) omit subparagraph (4)(c)(ii), substitute:\n\n“(ii) the advice constitutes financial product advice to a retail client and it includes, or is accompanied by, a written statement that:\n\n(A) the person providing the advice is not licensed or authorised (as applicable) to provide financial product advice of the kind mentioned in paragraph (a); and\n\n(B) taxation is only one of the matters that must be considered when making a decision on a financial product; and\n\n(C) the client should consider taking advice from the holder of an Australian financial services licence with the appropriate authorisation before making a decision on a financial product.”;\n\n(c) in subregulation (6) insert the following definitions:\n\n“limited financial services has the meaning given by subsection 912A(4) of the Act (as notionally inserted by subregulation 7.6.01BA(3)).\n\n    limited licensee has the meaning given by subsection 912A(4) of the Act (as notionally inserted by subregulation 7.6.01BA(3)).”.\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| 2016/1151         | 6/12/2016 (see F2016L01866) | 7/12/2016            |                                                |\n| 2017/464          | 26/5/2017 (see F2017L00600) | 27/5/2017            | -                                              |\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| Para 5(a) (notional paragraph 7.1.29(4)(aa))              | rs. 2017/464 |\n| Para 5(b) (notional sub-subparagraph 7.1.29(4)(c)(ii)(A)) | rs. 2017/464 |\n| Para 5(b) (notional sub-subparagraph 7.1.29(4)(c)(ii)(C)) | am. 2017/464 |","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"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument broadens the circumstances in which advice can be treated as an exempt service by treating regulation 7.1.29 as modified so that advice given by a financial services licensee (including a limited licensee) or a representative may be exempt even if it is not covered by the licence authorisation, subject to specified disclosure obligations to retail clients (see s5(a)–(b)). It also adds notionally inserted definitions for 'limited licensee' and 'limited financial services' (s4, s5(c))."},"complexity_factors":["Cross-reference to multiple provisions outside the instrument (Part 7.6 of the Corporations Act, regulation 7.1.29 of the Corporations Regulations) requiring knowledge of external texts to determine full effect (see s5).","Introduction of a notional modification (treating a regulation as if modified) rather than direct substitution increases interpretive steps (s5).","New conditional exemption applies to licence-holders and representatives when advice is not covered by authorisation, creating edge cases around scope of authorisations and 'advice mentioned in paragraph (a)' (s5(a)).","Mandatory consumer disclosure requirements for retail clients add operational compliance burdens and checklist-style obligations for licensees/representatives (s5(b)).","Insertion of 'limited licensee' and 'limited financial services' as notionally defined terms ties effect to definitions that are themselves dependent on amendment/interpretation of subsection 912A(4) (s4, s5(c)).","Undertaking compliance requires firms to track which advice is authorised, which is not, and to ensure the specified written statement accompanies advice to retail clients—administrative and training costs follow (s5(b)).","Potential interactions with existing licensing arrangements and authorised representative agreements increase legal risk and demand for contract review.","Amendment history and notional insertions make it harder to trace operative text across versions (Endnotes)."],"plain_english_summary":"This instrument modifies how Part 7.6 of the Corporations Act applies by treating regulation 7.1.29 as if changed so certain financial product advice given by financial services licensees (including limited licensees) or their representatives can be treated as an exempt service even when that advice is not covered by the licence authorisation. It requires that retail clients receive a written statement saying the adviser is not authorised for that advice, that taxation is only one consideration, and that the client may wish to seek advice from an appropriately authorised AFSL holder."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: creating a limited exemption for recognised accountants providing incidental financial product advice in the course of tax advice. The 2017 amendments refined the disclosure requirements but did not expand the substantive scope beyond SMSF-related tax advice."},"complexity_factors":["Short instrument (only 5 substantive sections) but relies heavily on 'notional modifications' to existing regulations rather than standalone text","Requires cross-referencing to: Corporations Act 2001 (Part 7.6, sections 912A, 926A), Corporations Regulations 2001 (regulation 7.1.29), and subregulation 7.6.01BA(3)","Uses 'as notionally inserted' drafting technique—creating fictional provisions that don't actually exist in the parent Act but are treated as if they do","Nested conditional logic: the exemption only applies if (a) advice is incidental to tax, AND (b) specific disclosure statement given, AND (c) advice not covered by existing licence authorisation","Defined terms ('limited licensee', 'limited financial services') rely on external statutory provisions that were themselves inserted by regulation","Amendment history shows iterative refinement (2017 changes substituted key disclosure requirements), indicating evolving regulatory intent"],"plain_english_summary":"This instrument creates a safe-harbour carve-out from Australia’s AFSL rules for recognised accountants who, while giving tax advice, incidentally advise about SMSFs and certain financial products. It lets eligible tax agents give limited, unlicensed advice only if they meet strict conditions and provide prominent written warnings about the advice’s limits and the value of full financial advice. It mainly affects recognised accountants, limited licensees and their clients; a 2017 amendment tightened the required disclosures."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151","history":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151/history","analysis":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151/analysis","conflicts":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151/conflicts","importantCases":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151/important-cases","documents":"/api/acts/asic-corporations-recognised-accountants-exempt-services-instrument-2016-1151/documents"}}