{"id":"F2020L00623","name":"ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487","slug":"asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":100135,"registerId":"commonwealth-F2020L00623-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487\n\nAbout this compilation\n\nCompilation No. 1\n\nThis is a compilation of ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487 as in force on 24 October 2020. 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](#_Toc55464241)\n\n[1 Name of legislative instrument](#_Toc55464242)\n\n[3 Authority](#_Toc55464243)\n\n[4 Definitions](#_Toc55464244)\n\n[Part 2—Exemptions](#_Toc55464245)\n\n[5 Best interests obligations](#_Toc55464246)\n\n[6 Ban on conflicted remuneration](#_Toc55464247)\n\n[Endnotes](#_Toc55464248)\n\n[Endnote 1—Instrument history](#_Toc55464249)\n\n[Endnote 2—Amendment history](#_Toc55464250)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Credit (Deferral of Mortgage Broker Obligations) Instrument 2020/487.\n\n3 Authority\n\nThis instrument is made under subsection 163(3) of the National Consumer Credit Protection Act 2009.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the National Consumer Credit Protection Act 2009.\n\nPart 2—Exemptions\n\n5 Best interests obligations\n\n(1) The classes of persons specified for the purposes of this section are exempt from all provisions of Division 2 of Part 3-5A of the Act in relation to the provision of credit assistance to a consumer before 1 January 2021.\n\n(2) The classes of persons specified for the purposes of this section are:\n\n(a) a mortgage broker; and\n\n(b) a credit representative of a licensee that is a mortgage broker.\n\n6 Ban on conflicted remuneration\n\n(1) The classes of persons specified for the purposes of this section are exempt from all provisions of Division 4 of Part 3-5A of the Act in relation to a benefit given in relation to the provision of a credit service before 1 January 2021, irrespective of whether the benefit is given before, on or after 1 January 2021.\n\n(2) The classes of persons specified for the purposes of this section are:\n\n(a) a mortgage broker; and\n\n(b) a mortgage intermediary; and\n\n(c) a credit representative of a licensee that is a mortgage broker or a mortgage intermediary; and\n\n(d) a credit provider; and\n\n(e) an employer of a mortgage broker or mortgage intermediary; and\n\n(f) an employer of a representative of a mortgage broker or mortgage intermediary.\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| 2020/487          | 27/5/2020 (see F2020L00623)  | 28/5/2020            |                                                |\n| 2020/963          | 23/10/2020 (see F2020L01335) | 24/10/2020           | -                                              |\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| Subsection 6(1)    | rs. 2020/963 |","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":2,"scope_assessment":{"changed":false,"description":"This instrument maintains a narrow, temporary scope consistent with its original purpose as a deferral mechanism. It does not expand beyond providing time-limited exemptions for specific classes of persons from two specific statutory divisions. The October 2020 amendment refined the temporal application of the conflicted remuneration exemption but did not broaden the substantive scope beyond the original deferral intent."},"complexity_factors":["Very short instrument — only 6 operative sections (with Section 2 repealed)","Minimal defined terms — only 1 definition ('Act') in the interpretation section","Simple structure — preliminary provisions followed by two exemption provisions","No nested exceptions or complex conditional logic — exemptions are straightforward time-bound and class-based carve-outs","Limited cross-referencing — only references to external Act divisions (Division 2 and Division 4 of Part 3-5A of the National Consumer Credit Protection Act 2009)","Clear temporal limitation — all exemptions expire on a fixed date (1 January 2021)"],"plain_english_summary":"This instrument temporarily delays two key consumer protections for the mortgage industry until 1 January 2021, giving brokers, intermediaries, credit representatives, credit providers and employers extra time to comply. It exempts brokers and their reps from the “best interests” duty for assistance provided before that date and broadens an exemption to the ban on conflicted remuneration for benefits tied to services provided before 1 January 2021 (even if paid later). Made during COVID-19, it reduced consumer protections during the interim."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument was amended by Instrument 2020/963 (commencing 24 October 2020), which replaced subsection 6(1). The current subsection clarifies that the exemption from the ban on conflicted remuneration covers benefits given in relation to services provided before 1 January 2021 irrespective of whether the benefit itself is paid before, on or after that date, altering the timing/operation of that exemption."},"complexity_factors":["Cross-reference to the National Consumer Credit Protection Act 2009—exemptions operate by disapplying specific Divisions (Division 2 and Division 4 of Part 3‑5A), requiring users to consult the Act to see what is displaced.","Multiple categories of persons covered (mortgage broker; mortgage intermediary; credit representatives; credit providers; employers), which affects who benefits and who remains regulated.","Temporal scope: exemptions apply only in relation to credit assistance or benefits tied to services provided before 1 January 2021, but subsection 6(1) clarifies coverage irrespective of when a benefit is paid (before, on or after 1 January 2021), which creates timing subtleties.","Short, targeted instrument but dependent on precise interpretation of terms in the primary Act (eg, 'credit assistance', 'benefit'), increasing legal reliance on definitions outside the instrument.","Amendment history (replacement of subsection 6(1) by instrument 2020/963) means readers must track versions to know current scope and effect."],"plain_english_summary":"This instrument temporarily exempts mortgage brokers and related parties from two specific obligations in the National Consumer Credit Protection Act: the ‘best interests’ duty and the ban on conflicted remuneration, insofar as they relate to credit assistance or benefits tied to services provided before 1 January 2021. It applies to mortgage brokers, mortgage intermediaries, credit representatives, credit providers and their employers. The measure delays compliance costs and preserves existing payment arrangements while ASIC administers the exemption under its statutory authority."}},"importantCases":[],"_links":{"self":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487","history":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487/history","analysis":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487/analysis","conflicts":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487/conflicts","importantCases":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487/important-cases","documents":"/api/acts/asic-credit-deferral-of-mortgage-broker-obligations-instrument-2020-487/documents"}}