ASIC Corporations (Factoring Arrangements) Instrument 2017/794

ASIC Corporations (Factoring Arrangements) Instrument 2017/794

made under paragraphs 926A(2)(a), 992B(1)(a) and 1020F(1)(a) of the Corporations Act 2001

Compilation No. 1 

Compilation date: 27/03/2026

Includes amendments: F2026L00366

About this compilation

This compilation

This is a compilation of the ASIC Corporations (Factoring Arrangements) Instrument 2017/794 that shows the text of the law as amended and in force on 27/03/2026 (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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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—Exemption

5 Exemption from licensing, hawking and disclosure obligations

6 Where exemption is available

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 (Factoring Arrangements) Instrument 2017/794.

3 Authority

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

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

eligible person means a person who:

(a) is an eligible seller; or

(b) is or proposes to be the purchaser of debt obligations under the terms of a factoring arrangement; or

(c) provides a financial service in relation to a factoring arrangement.

eligible seller means a person who is or proposes to be the seller of debt obligations under the terms of a factoring arrangement.

factoring arrangement means an arrangement under which a person acquires debt obligations, such as receivables, at a discount.

Part 2—Exemption

5 Exemption from licensing, hawking and disclosure obligations

An eligible person does not have to comply with any of the following:

(a) subsection 911A(1) of the Act for the provision of any of the following financial services:

(i) dealing in derivatives that are factoring arrangements;

(ii) providing financial product advice in relation to derivatives that are factoring arrangements;

Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115 provides relief from subsections  911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption under section 926A of the Act.

(b) section 992A of the Act in relation to the making of an offer to issue a derivative that is a factoring arrangement;

(c) Part 7.9 of the Act in relation to a recommendation to acquire, or an offer or issue of, or making an offer to arrange the issue of, a derivative that is a factoring arrangement.

6 Where exemption is available

The exemption in section 5 is available where the eligible person:

(a) is an eligible seller; or

(b) otherwise:

(i) gives the terms and conditions of the factoring arrangement in writing to each retail client to whom the factoring arrangement is issued before the arrangement is issued; and

(ii) establishes and maintains an internal dispute resolution system that:

(A) complies with Australian Standard AS ISO 10002-2006 Customer satisfaction – Guidelines for complaints handling in organizations (ISO 10002:2004 MOD) published by SAI Global Limited on 5 April 2006; and

(B) covers complaints made by retail clients against the person in connection with the provision of financial services that relate to factoring arrangements.

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