ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401

Administered by Department of the Treasury

Legislation au F2020L00478 Not in force Legislative Instrument

Legislation content

ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401

 

About this compilation

 

Compilation No. 1

 

This is a compilation of ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401 as in force on 29 September 2020. It includes any commenced amendment affecting the legislative instrument to that date.

 

This compilation was prepared by the Australian Securities and Investments Commission.

 

The notes at the end of this compilation (the endnotes) include information

about amending instruments and the amendment history of each amended provision.

 

 

Contents

Part 1—Preliminary

1 Name of legislative instrument

3 Cessation

4  Authority

5 Definitions

Part 2—Exemption

6 Exemption—offering debit cards to existing account holders

Part 3—Declarations

7 Declarations—offering debit cards to existing account holders

Endnotes

Endnote 1—Instrument history

Endnote 2—Amendment history

 

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401.

3 Cessation

This instrument ceases to apply on 1 January 2021.

4  Authority

This instrument is made under subsection 992B(1) and paragraph 1020F(1)(c) of the Corporations Act 2001.

5 Definitions

In this instrument:

Act means the Corporations Act 2001

ADI (short for authorised deposit-taking institution) has the meaning given in section 5 of the Banking Act 1959.

debit card has the meaning given in subsection 12DL(5) of the ASIC Act.

eligible account holder means, in relation to an ADI, a person who holds a basic deposit product issued by the ADI, but who does not have a debit card issued by the ADI.

eligible product means:

(a) a basic deposit product; or

(b) a facility for making non-cash payments that is related to a basic deposit product.

issue situation has the same meaning as in section 1012B of the Act.

recommendation situation has the same meaning as in 1012A of the Act.

regulated person has the same meaning as in section 1011B of the Act.

Regulations mean the Corporations Regulations 2001.

Part 2—Exemption

6 Exemption—offering debit cards to existing account holders

(1) An ADI does not have to comply with subsection 992A(1) of the Act in relation to an offer to issue an eligible product that occurs in the course of an unsolicited meeting with an eligible account holder.

(2) The exemption in subsection (1) is only available where both of the following are satisfied:

(a) the unsolicited meeting occurs at a place where the ADI carries on business;

(b) the offer to issue the eligible product includes an offer to issue a debit card that is able to be used in relation to the eligible product.

Part 3—Declarations

7 Declarations—offering debit cards to existing account holders

Hawking

(1) Part 7.8 of the Act applies in relation to an ADI as if subsection 992A(3) were modified or varied by:

(a) in paragraph 992A(3)(a), omitting all the words after “prescribed by the regulations” and substituting “; and”; and

(b) in paragraph 992A(3)(b), before “given”, inserting “if the person is not listed on the “No Contact/No Call” register in relation to the person making the contact—”; and

(c) omitting paragraph 992A(3)(c).

(2) The declaration in subsection (1) applies in relation to an offer by an ADI to issue an eligible product where the offer:

(a) is made in the course of an unsolicited telephone call to an eligible account holder; and

(b) includes an offer to issue a debit card that is able to be used in relation to the eligible product.

Note:  Also see regulation 7.8.21A of the Regulations in relation to the operation of subsection 992A(3) of the Act.

Product disclosure

(3) Part 7.9 of the Act applies in relation to a regulated person as if regulation 7.9.07FA of the Regulations were modified or varied by, in notional paragraph 1012D(7A) of the Act, omitting paragraphs 1012D(7A)(d) and (e) and substituting:

“(d)  the regulated person has informed the client of how further information about the amounts mentioned in paragraph (c) can be obtained, or provided the client with that information; and

(e) the regulated person has provided the client with the information described in paragraphs (b) to (d) no later than:

(i)  if the client is given a debit card (within the meaning of subsection 12DL(5) of the ASIC Act) that is able to be used in relation to the eligible product—the time the client is given the debit card; and

(b) otherwise—the time the eligible product is issued to the client.”.

(4) The declaration in subsection (3) applies in relation to a recommendation situation and an issue situation in relation to an eligible product where:

(a) the regulated person is an ADI that is the issuer of the eligible product; and

(b) the client in relation to the recommendation situation or issue situation is an eligible account holder; and

(c) in the case of a recommendation situation—the recommendation includes a recommendation that the eligible account holder acquire a debit card that is able to be used in relation to the eligible product; and

(d) in the case of an issue situation that is an offer to issue the eligible product—the offer includes an offer to issue a debit card that is able to be used in relation to the eligible product; and

(e) in the case of an issue situation that is the issue of the eligible product—the ADI also issues to the eligible account holder a debit card that is able to be used in relation to the eligible product.

(5) Part 7.9 of the Act applies in relation to a regulated person as if the provisions of the Part were modified or varied as follows:

(a) in subsection 1012A(4), omit “and 1014E”, substitute “, 1012GB and 1014E”;

(b) in subsection 1012B(5), omit “and 1014E”, substitute “, 1012GB and 1014E”;

(c) before section 1012H, insert the following:

“1012GB Product Disclosure Statement may sometimes be provided later in relation to offers and issues of debit cards

(1) This section applies in relation to a recommendation situation and an issue situation in relation to an eligible product where:

(a) the regulated person is an ADI that is the issuer of the eligible product; and

(b) the client in relation to the recommendation situation or issue situation is an eligible account holder; and

(c) in the case of a recommendation situation—the recommendation includes a recommendation that the eligible account holder acquire a debit card that is able to be used in relation to the eligible product; and

(d) in the case of an issue situation that is an offer to issue the eligible product—the offer includes an offer to issue a debit card that is able to be used in relation to the eligible product; and

(e) in the case of an issue situation that is the issue of the eligible product—the ADI also issues to the eligible account holder a debit card that is able to be used in relation to the eligible product; and

(f) the regulated person is required to give the client a Product Disclosure Statement for the eligible product.

Note: The regulated person will not have to give the client a Product Disclosure Statement if subsection 1012D(7A) (as notionally inserted by regulation 7.9.07FA of the Corporations Regulations 2001) applies.

(2) The regulated person need not give the client a Product Disclosure Statement for the eligible product at or before the time when it would otherwise be required to be given.

The regulated person must comply with subsection (3) instead.

 (3)  If the regulated person issues the eligible product to the client, the regulated person must give the client a Product Disclosure Statement not later than:

(a)  if the client is given a debit card that is able to be used in relation to the eligible product—the time the client is given the debit card; and

(b) otherwise—the time the eligible product is issued to the client.”.

Note: A Product Disclosure Statement could be provided for a facility for making non-cash payments that is related to either a new basic deposit product or an existing basic deposit product.

(4) In this section:

ADI (short for authorised deposit-taking institution) has the meaning given in section 5 of the Banking Act 1959.

debit card has the meaning given in subsection 12DL(5) of the ASIC Act.

eligible account holder means, in relation to an ADI, a person who holds a basic deposit product issued by the ADI, but who does not have a debit card issued by the ADI.

eligible product means:

(a) a basic deposit product; or

(b) a facility for making non-cash payments that is related to a basic deposit product.”.

Endnotes

Endnote 1—Instrument history

Instrument number

Date of FRL registration

Date of commencement

Application, saving or transitional provisions

2020/401

24/4/2020 (see F2020L00478)

25/4/2020

 

2020/885

28/9/2020 (see F2020L01235)

29/9/2020

-

Endnote 2—Amendment history

ad. = added or inserted     am. = amended     LA = Legislation Act 2003    rep. = repealed     rs. = repealed and substituted

Provision affected 

How affected

Section 2

rep. s48D LA

Section 3

am. 2020/885

 

 

Overview

The ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401 was enacted to provide temporary relief and flexibility to authorised deposit-taking institutions (ADIs) in the distribution of debit cards, particularly in light of the COVID-19 pandemic. The instrument, which came into effect on 25 April 2020, is designed to address the operational challenges faced by ADIs in providing services to existing account holders during the pandemic. Made under the Corporations Act 2001, it aims to facilitate the distribution of debit cards by modifying certain provisions that would otherwise require compliance with specific regulations. The primary policy objective is to ensure that ADIs can continue to operate effectively while minimising disruptions to their customers' access to financial services. The instrument is set to cease on 1 January 2021, reflecting its temporary nature in response to the extraordinary circumstances of the pandemic.

Scope and Application

The ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401 applies to authorised deposit-taking institutions (ADIs) as defined in the Banking Act 1959, which include authorised banks, authorised credit unions, and authorised building societies. The instrument specifically addresses the distribution of debit cards to eligible account holders, who are defined as individuals holding a basic deposit product issued by an ADI but not possessing a debit card from the same ADI. This instrument operates under the authority of subsection 992B(1) and paragraph 1020F(1)(c) of the Corporations Act 2001 and applies on a national level across Australia. The instrument exempts ADIs from certain compliance requirements regarding the offer of debit cards to eligible account holders in specific circumstances, such as during unsolicited meetings or telephone calls, provided the offer includes a debit card. Additionally, it modifies the application of product disclosure provisions to allow for delayed provision of Product Disclosure Statements under certain conditions. The instrument ceased to apply on 1 January 2021, as stipulated in section 3.

Key Provisions

The ASIC Corporations (COVID-19 – Distribution of Debit Cards) Instrument 2020/401 primarily provides exemptions and declarations concerning the distribution of debit cards by authorised deposit-taking institutions (ADIs) to existing account holders during the COVID-19 pandemic. Section 6 of the Instrument exempts ADIs from complying with subsection 992A(1) of the Corporations Act 2001 when offering debit cards to existing account holders during unsolicited meetings at business premises, provided the offer includes a debit card usable with the eligible product. Section 7 of the Instrument modifies certain provisions of the Corporations Act to allow for specific declarations related to the distribution of debit cards. These modifications pertain to telemarketing (subsection 7(1)) and product disclosure (subsection 7(3)) requirements, offering flexibility in these areas for ADIs distributing debit cards. The Instrument imposes specific obligations on ADIs and regulated persons to ensure compliance with the exemptions and declarations provided. ADIs must ensure that any unsolicited meetings or telephone calls offering debit cards comply with the conditions set out in section 6, such as being conducted at a business premises and including an offer of a usable debit card. Regulated persons, particularly ADIs, must adhere to the modified provisions in section 7, including the modified telemarketing and product disclosure requirements. These modifications allow for certain exemptions and flexibility in how and when product disclosure statements are provided to clients. The Instrument does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. However, non-compliance with the Corporations Act 2001 or the Corporations Regulations 2001 may result in penalties under those Acts. For instance, contraventions of the Corporations Act can lead to significant civil penalties, and in some cases, criminal penalties, depending on the nature and severity of the breach. The Corporations Regulations 2001 may also provide for specific penalties for non-compliance with its provisions.

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Exemptions & Exclusions
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.