{"id":"F2020L01259","name":"ASIC Credit (Notice Requirements for Unlicensed Carried Over Instrument Lenders) Instrument 2020/834","slug":"asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440621,"registerId":"F2020L01259-fast-fetch-1775956194571","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Credit (Notice Requirements for Unlicensed Carried Over Instrument Lenders) Instrument 2020/834","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Credit (Notice Requirements for Unlicensed Carried Over Instrument Lenders) Instrument 2020/834\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 28 September  2020\n\n \n\n \n\n \n\n \n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc52176047)\n\n[1 Name of legislative instrument](#_Toc52176048)\n\n[2 Commencement](#_Toc52176049)\n\n[3 Authority](#_Toc52176050)\n\n[4 Definitions](#_Toc52176051)\n\n[Part 2—Declaration](#_Toc52176052)\n\n[5 Notice requirement](#_Toc52176053)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Credit (Notice Requirements for Unlicensed Carried Over Instrument Lenders) Instrument 2020/834.\n\n2 Commencement\n\nThis instrument commences on the day after it 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 item 41 of Schedule 2 to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009.\n\n4 Definitions\n\nIn this instrument:\n\nTransitional Credit Act means the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009.\n\nPart 2—Declaration\n\n5 Notice requirement\n\n(1) Part 3 of Schedule 2 to the Transitional Credit Act applies in relation to all persons as if that Part were modified or varied by, after item 19, inserting:\n\n“19A Obligation on certain persons to give notice to ASIC\n\n(1) Subitem (2) applies to a person (lender) who is a credit provider or lessor in relation to a carried over instrument immediately before 1 July 2010 if both of the following apply:\n\n(a) the lender is a credit provider or lessor in relation to the carried over instrument at any time after 30 June 2010;\n\n(b) the lender is neither of the following:\n\n(i) a licensee;\n\n(ii) a person exempt from the requirement to hold a licence under the National Credit Act.\n\n(2) The lender must lodge with ASIC a notice in the approved form containing the following information:\n\n(a) the lender’s name (including the lender’s principal business name if any);\n\n(b) the name of:\n\n(i) if the lender is a body corporate—each director or secretary of the body corporate; and\n\n (ii) if the lender is a partnership or the trustees of a trust—each partner or trustee;\n\n(c) the postal address of the lender;\n\n(d) if the principal business address of the lender is different from the postal address—the principal business address;\n\n(e) if the lender has an Australian Business Number—the Australian Business Number;\n\n(f) the number of carried over instruments held by the lender and the total amount owed to the lender under the instruments;\n\n(g) whether the lender is a member of the AFCA scheme;\n\n(h) an estimate of the date on which the longest running carried over instrument will be finalised, if payments are made in accordance with the terms of the instrument;\n\n(i) if the lender is a prescribed unlicensed carried over instrument lender—the grounds on which the lender is a prescribed unlicensed carried over instrument lender; and\n\n(j) any other information requested by ASIC.\n\nThe notice must be lodged with ASIC on the first day paragraphs (1)(a) and (b) both apply in relation to the lender.\n\nCivil penalty: 2,000 penalty units.\n\n(3) The lender does not have to comply with subitem (2) if the lender has lodged the notice with ASIC up to 6 weeks before it must be so lodged under that subitem.\n\n(4) The information contained in the notice must be current at the date the notice is lodged with ASIC.\n\nOffence\n\n(5) A person commits an offence if:\n\n(a) the person is subject to a requirement under subitem (2); and\n\n(b) the person engages in conduct; and\n\n(c) the conduct contravenes this requirement.\n\nCriminal penalty: 25 penalty units, or 6 months imprisonment, or both.\n\nStrict liability offence\n\n(6) A person commits an offence if:\n\n(a) the person is subject to a requirement under subitem (2); and\n\n(b) the person engages in conduct; and\n\n(c) the conduct contravenes this requirement.\n\nCriminal penalty: 10 penalty units\n\n(7) Subitem (6) is an offence of strict liability.\n\nNote: For strict liability, see section 6.1 of the Criminal Code.”.\n\nNote 1:  The declaration in this instrument substantially produces the effect that item 39A of Schedule 2 to the Transitional Credit Act (as notionally inserted by regulation 16E of the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010 as in force on 24 May 2010) would have had but for some drafting anomalies. As a result of those anomalies, that item did not have any operation.\n\nNote 2: A prescribed unlicensed carried over instrument lender is defined in subsection 5(1) and section 5A of the National Consumer Credit Protection Act 2009 (as notionally inserted by regulation 25E and Schedule 2 to the National Consumer Credit Protection Regulations 2010).         \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"This instrument restores and gives operative effect to a notice obligation that was intended but did not operate due to earlier drafting anomalies (see Note 1). Mechanically, it inserts item 19A into Part 3 of Schedule 2 to the Transitional Credit Act to impose explicit reporting duties and specified penalties on unlicensed lenders holding carried‑over instruments (see Part 2, item 5 and accompanying notes)."},"complexity_factors":["Cross-references to the National Consumer Credit Protection (Transitional and Consequential Provisions) Act 2009 (the Transitional Credit Act) and to separate regulations for defined terms (increase navigational burden) — see instrument Part 2, item 5.","Reliance on defined concept 'carried over instrument' and the qualifier 'prescribed unlicensed carried over instrument lender' that are defined elsewhere (requires reading multiple instruments and regs).","Multiple penalty regimes in the single item: civil penalty (2,000 penalty units), criminal penalty (25 units and/or imprisonment) and a strict‑liability offence (10 units) (creates different compliance risk profiles).","Timing and trigger conditions (held immediately before 1 July 2010; continued as a credit provider/lessor after 30 June 2010; lodging on first day both conditions apply) require factual sequencing checks by affected entities — item 19A(1)–(3).","Administrative discretion: ASIC accepts an 'approved form' and can request 'any other information' (gives ASIC scope to define form and content), item 19A(2)(j).","Reference to AFCA membership and corporate officer listing (information burdens vary by organisational form) — item 19A(2)(b),(g).","Note about prior drafting anomalies and restorative effect (instrument aims to produce an effect intended earlier) increases interpretative complexity — instrument notes."],"plain_english_summary":"This instrument inserts item 19A into Part 3 of Schedule 2 to the Transitional Credit Act, requiring persons who held ‘carried over instruments’ before 1 July 2010 and who continue as unlicensed credit providers or lessors after 30 June 2010 to lodge an approved-form notice with ASIC. The notice must give identity and contact details, ABN if any, the number and total amount of carried-over instruments, AFCA membership, an estimated finalisation date and any other ASIC-requested information. Non-compliance attracts a civil penalty (2,000 penalty units), criminal penalties (25 penalty units and/or up to 6 months’ imprisonment) and a strict‑liability 10‑unit offence."},"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":3,"scope_assessment":{"changed":false,"description":"This instrument performs a narrow, technical fix. It reinstates a notice requirement that was intended to exist since 2010 but failed due to drafting errors. The scope remains exactly what was originally intended: a one-off notification requirement for unlicensed lenders holding pre-2010 credit contracts. It does not expand beyond this original purpose."},"complexity_factors":["Very short instrument (only 5 sections)","Single operative provision (section 5) that inserts one new item into existing legislation","Only 1 defined term ('Transitional Credit Act')","Heavy reliance on external definitions (carried over instrument, licensee, AFCA scheme, prescribed unlicensed carried over instrument lender) that aren't defined in this instrument","Nested conditional logic in subitem 19A(1) with two cumulative requirements (paragraphs a and b)","Creates both civil penalties and criminal offences with strict liability","Includes explanatory notes about fixing drafting anomalies in previous instruments, indicating technical legislative repair work"],"plain_english_summary":"This instrument requires unlicensed lenders holding pre‑1 July 2010 \"carried over\" credit or lease contracts to lodge a notice with ASIC listing business name, directors, addresses, number of outstanding carried‑over loans and expected final repayment; the notice is due when they first meet the criteria (can be filed up to six weeks early).\n\nIt fixes a drafting error to improve transparency. Breaches attract civil penalties up to 2,000 penalty units; criminal penalties up to 25 units and/or six months’ jail for intentional breaches, and 10 units for strict‑liability offences."}},"importantCases":[],"_links":{"self":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834","history":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834/history","analysis":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834/analysis","conflicts":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834/conflicts","importantCases":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834/important-cases","documents":"/api/acts/asic-credit-notice-requirements-for-unlicensed-carried-over-instrument-lenders-instrument-2020-834/documents"}}