ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38

ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38

made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001.
 

Compilation No. 3 

Compilation date: 13/12/2025

Includes amendments: F2025L01575

About this compilation

This compilation

This is a compilation of the ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 that shows the text of the law as amended and in force on 13/12 /2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).

Application, saving and transitional provisions

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary

1 Name of legislative instrument

3 Authority

4 Definitions

Part 2—Declaration

5 Definition of managed investment scheme

Part 3—Exemption

6 Licensing

7 Hawking

8 Financial product disclosure

Part 4—Application and transitional

9 Application

10 Transitional

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38.

3 Authority

This instrument is made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

conditional costs agreement means an agreement of the kind defined as a conditional costs agreement in section 181 of Schedule 1 (Legal Profession Uniform Law) to the Legal Profession Uniform Law Application Act 2014 of the State of Victoria as in force on 17 January 2020 whether or not in that State or for the purposes of that Act.

Part 2—Declaration

5 Definition of managed investment scheme

Chapter 5C of the Act applies to all persons as if section 9 of the Act were modified or varied as follows:

(a)  after the definition of condition, insert:

“conditional costs agreement means an agreement of the kind defined as a conditional costs agreement in section 181 of Schedule 1 (Legal Profession Uniform Law) to the Legal Profession Uniform Law Application Act 2014 of the State of Victoria as at 17 January 2020 whether or not in that State or for the purposes of that Act.”;

(b)  in the definition of managed investment scheme, after paragraph (mb) insert:

“(mba) a scheme for participating in and conducting legal proceedings where the members of the scheme:

(i)  have or may have an entitlement to a remedy arising out of the same or similar circumstances; and

(ii)  wholly or substantially fund their legal costs under conditional costs agreements;

(mbb) a scheme for proving claims against a company under Division 6 of Part 5.6 (including the preparation and lodgement of the proofs) where the members of the scheme:

(i)  have or may have claims against the company arising out of the same or similar circumstances; and

(ii)  wholly or substantially fund their legal costs under conditional costs agreements;”.

Part 3—Exemption

6 Licensing

A person does not have to comply with subsection 911A(1) or 911B(1) of the Act for the provision of a financial service in relation to:

 (a)  an interest in a managed investment scheme (a conditional cost litigation scheme) that is a scheme for participating in and conducting legal proceedings, where the members of the scheme:

(i)  have or may have an entitlement to a remedy arising out of the same or similar circumstances; and

(ii)  wholly or substantially fund their legal costs under conditional costs agreements; or

 (b)  an interest in a managed investment scheme (a conditional cost proof of debt scheme) that is a scheme for proving claims against a company under Division 6 of Part 5.6 of the Act (including the preparation and lodgement of the proofs) where the members of the scheme:

(i)  have or may have claims against the company arising out of the same or similar circumstances; and

(ii)  wholly or substantially fund their legal costs under conditional costs agreements; or

 (c) an arrangement (a funding product), or an interest (a funding product) in an arrangement of either of the following kind, to the extent that the arrangement or interest is a financial product other than an interest in a conditional cost litigation scheme or conditional cost proof of debt scheme:

(i)  an arrangement for participating in and conducting legal proceedings brought by or on behalf of a person where the person’s legal costs are wholly or substantially funded under a conditional cost agreement;

(ii)  an arrangement for proving claims made by a person against a company under Division 6 of Part 5.6 of the Act (including the preparation and lodgement of the proofs) where the person’s legal costs are wholly or substantially funded under a conditional cost agreement.

7 Hawking

A person does not have to comply with subsection 992A of the Act in relation to:

(a)  an interest in a conditional cost litigation scheme; or

(b)  an interest in a conditional cost proof of debt scheme; or

(c)  a funding product.

8 Financial product disclosure

A person does not have to comply with Part 7.9 of the Act in relation to:

(a)  an interest in a conditional cost litigation scheme; or

(b)  an interest in a conditional cost proof of debt scheme; or

(c)  a funding product.

Part 4—Application and transitional

9 Application

For the avoidance of doubt, the declaration in section 5 does not have effect for the purposes of section 601MB of the Act in relation to a contract entered into before the commencement of this instrument by a person to subscribe for an interest in:

1.           a conditional cost litigation scheme; or

(b) a conditional cost proof of debt scheme.

10 Transitional

This instrument has effect until the end of 31 January 2029.

Endnotes  

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history