Explanatory Statement
ASIC Corporations (Amendment) Instrument 2026/246
This is the Explanatory Statement for ASIC Corporations (Amendment) Instrument 2026/246.
The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).
Summary
1. ASIC Corporations (Amendment) Instrument 2026/246 (the instrument) extends the expiry date of ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194 (the principal instrument) by 5 years to 1 April 2031. The principal instrument exempts certain types of exchange-traded instalment warrants from the margin lending obligations, that are ordinarily applicable to traditional margin loans, that meet the terms of the instrument.
Purpose of the instrument
2. The principal instrument sunsets on 1 April 2026. To preserve its effect, a legislative instrument must be amended or remade before the sunset date. The purpose of sunsetting is to ensure that instruments are kept up to date and only remain in force while they are fit for purpose, necessary and relevant.
3. The principal instrument exempts the issuers of exchange traded instalment warrants from the additional obligations imposed on margin lenders, in particular, in Division 4A of Part 7.8 of the Corporations Act 2001 (the Act). This ensures that issuers of instalment warrants that have been admitted to quotation on a declared financial market can continue issuing them to investors, including investors buying in the time-critical secondary trading market, without having to comply with the obligations.
4. As such, ASIC has decided to extend the sunsetting date of the relief through the amending instrument. In addition, to maintain the market neutrality of the principal instrument, the amending instrument updates the wording of “licensed market operated by an Australian domestic market licensee” to “declared financial market”.
Consultation
5. Before making the instrument, ASIC undertook a streamlined public consultation inviting feedback on a proposal to extend the relief under the principal instrument as set out in CS 46 Proposed remake of exchange-traded warrant-related instruments. The consultation ran from 17 March 2026 to 24 March 2026 and involved the publication of a news item and a consultation webpage on ASIC’s website attaching a draft legislative instrument.
6. ASIC did not receive any submissions, and no changes were made to the draft legislative instrument following the consultation.
Operation of the instrument
Name of legislative instrument
7. Section 1 of the instrument states that the name of the instrument is the ASIC Corporations(Amendment) Instrument 2026/246.
Commencement
8. Section 2 of the instrument states that it commences on the day after it is registered on the Federal Register of Legislation
Authority
9. Section 3 of the instrument states that it is made under subsection 761EA(9) of the Act.
Schedules
10. Section 4 of the instrument states that the amendments are contained in Schedule 1.
Schedule 1—Amendments
11. Sections 1, 2 and 3 of Schedule 1 of the instrument amend the definitions of the principal instrument to remove the definition of “Australian domestic market licensee” and add a definition for “Act”.
12. Section 4 of Schedule 1 of the instrument replaces the words “licensed market operated by an Australian domestic market licensee” with “declared financial market” in paragraph 5(a) of the principal instrument.
Incorporation by reference
13. The instrument does not incorporate any matter by reference.
Legislative instrument and primary legislation
14. The subject matter and policy implemented by this instrument is more appropriate for a legislative instrument rather than primary legislation because:
a. the instrument is made under a specifically delegated power which is set out in the primary legislation at subsection 761EA(9) of the Act and is intended to complement the requirements or objectives in the primary legislation; and
b. the matters contained in the instrument are appropriately used to deal with specific, technical and machinery issues or where necessary to provide flexibility to keep pace with industry developments.
Duration of the instrument
15. Section 5 of Schedule 1 of the instrument amends the sunsetting date to 1 April 2031, extending the duration of the principal instrument by 5 years.
Legislative authority
16. Subsection 761EA(9) of the Act provides that ASIC may make a declaration that a particular kind of facility is not a margin lending facility.
17. This instrument is a disallowable legislative instrument.
Statement of Compatibility with Human Rights
18. The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.
Attachment
Statement of Compatibility with Human Rights
This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
ASIC Corporations (Amendment) Instrument 2026/246
Overview
1. The amending instrument extends the expiry date of the principal instrument by 5 years to 1 April 2031. The principal instrument exempts certain types of exchange-traded instalment warrants from the margin lending obligations, that are ordinarily applicable to traditional margin loans, that meet the terms of the instrument.
Assessment of human rights implications
2. This instrument does not engage any of the applicable rights or freedoms.
Conclusion
3. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.