Explanatory Statement
ASIC Corporations (Exchange-Traded Warrants) Instrument 2026/247
This is the Explanatory Statement for ASIC Corporations (Exchange-Traded Warrants) Instrument 2026/247.
The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).
Summary
1. ASIC Corporations (Exchange-Traded Warrants) Instrument 2026/247 (the instrument) repeals and remakes ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886 which will sunset on 1 October 2026. As such the instrument:
a. exempts issuers of exchange-traded managed investment warrants from financial reporting, continuous disclosure, periodic statement and certain Product Disclosure Statement requirements in Chapters 2M and 6CA and Part 7.9 of the Corporations Act 2001 (the Act). The exemption is subject to a condition that the warrant issuer provides ongoing disclosure of material changes and significant events; and
b. modifies Part 7.9 of the Act so that the secondary sale of exchange-traded warrants on a declared financial market does not require the provision of a Product Disclosure Statement.
Purpose of the instrument
2. The purpose of the instrument is to:
a. exempt issuers of exchange-traded warrants from complying with section 1013I in relation to a Product Disclosure Statement or Short-Form PDS, section 1015B in relation to a Product Disclosure Statement and section 1017D of the Act in relation to the warrant on the condition that they comply with section 1017B of the Act in relation to the warrant as if subsection 1017B(2) were omitted;
b. clarify that where a managed investment warrant might be characterised as an ED security under subsection 111AD(1) of the Act, warrant issuers are exempt from the reporting and continuous disclosure requirements in Chapters 2M and 6CA of the Act, but are subject to the continuous disclosure requirements in Part 7.9 of the Act; and
c. provide that Part 7.9 of the Act applies in relation to an exchange-traded warrant as if item 3 in the table in subsection 761E(3) of the Act were omitted where the exchange-traded warrant is acquired on the financial market in relation to which it has been admitted to trading status or quotation.
3. In addition, it repeals ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886 as it is superseded by this instrument.
Consultation
4. Before making the Instrument, ASIC undertook a streamlined public consultation inviting feedback on a proposal to remake the relief under ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886 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.
5. 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
6. Section 1 of the instrument states that the name of the instrument is the ASIC Corporations (Exchange-Traded Warrants) Instrument 2026/247.
Commencement
7. Section 2 of the instrument states that it commences on the day after it is registered on the Federal Register of Legislation
Authority
8. Section 3 of the instrument states that it is made under subsections 111AT(1) and 1020F(1) of the Act.
Schedules
9. Section 4 of the instrument states that the instruments repealed by this instrument are contained in Schedule 1.
Simplified outline
10. Section 5 of the instrument provides a simplified outline of the instrument.
Definitions
11. Section 6 of the instrument provides a definition for exchange-traded managed investment warrant and exchange-traded warrant that is market neutral and removes references to the operating rules of specific declared financial markets.
Part 2—Exemption
12. Subsection 7(1) of the instrument exempts issuers of exchange-traded warrants from complying with section 1013I of the Act in relation to a Product Disclosure Statement or Short-Form PDS, section 1015B of the Act in relation to a Product Disclosure Statement and section 1017D of the Act in relation to the warrant.
13. Subsection 7(2) of the instrument states that a warrant issuer does not have to comply with the disclosing entity provisions if the warrant issuer is a disclosing entity only because one or more classes of exchange-traded managed investment warrants of the warrant issuer are ED securities.
14. Section 8 of the instrument requires warrant issuers that rely on the exemption in section 7 to comply with section 1017B of the Act in relation to the warrant as if subsection 1017B(2) were omitted.
Part 3—Declaration
15. Section 9 of the instrument modifies Part 7.9 of the Act so that the secondary sale of exchange-traded warrants on a declared financial market does not require the provision of a Product Disclosure Statement.
Schedule 1—Repeals
16. Section 1 of Schedule 1 of the instrument repeals the whole of ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886.
Incorporation by reference
17. The instrument does not incorporate any matter by reference.
Legislative instrument and primary legislation
18. 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 specifically delegated powers which is set out in the primary legislation at subsections 111AT(1) and 1020F(1) 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
19. Section 10 of the instrument repeals the instrument at the start of 1 April 2031.
Legislative authority
20. ASIC makes this instrument under subsection 111AT(1) of the Act, which provides that ASIC may exempt specified persons from all or specified disclosing entity provisions.
21. ASIC makes this instrument under subsection 1020F(1) of the Act, which provides that ASIC may exempt a person, a class of persons, a financial product or class of financial products from provisions of Part 7.9 of the Act.
22. This instrument is a disallowable legislative instrument.
Statement of Compatibility with Human Rights
23. 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 (Exchange-Traded Warrants) Instrument 2026/247
Overview
1. The instrument remakes the exemption for issuers of exchange-traded managed investment warrants from financial reporting, continuous disclosure, periodic statement and certain Product Disclosure Statement requirements in Chapters 2M and 6CA and Part 7.9 of the Act. The exemption is subject to a condition that the warrant issuer provides ongoing disclosure of material changes and significant events.
2. The instrument also modifies Part 7.9 of the Act so that the secondary sale of exchange-traded warrants on a declared financial market does not require the provision of a Product Disclosure Statement.
Assessment of human rights implications
3. This instrument does not engage any of the applicable rights or freedoms.
Conclusion
4. 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.