ASIC Corporations (Factoring Arrangements) Instrument 2017/794

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Legislation au F2017L01198 In force Legislative Instrument

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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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

ad = added or inserted

orig = original

 

 

am = amended

p = page(s)

 

 

amdt = amendment

para = paragraph(s)/subparagraph(s)

 

 

C[x] = Compilation No. x

/sub‑subparagraph(s)

 

 

ch = Chapter(s)

pres = present

 

 

cl = clause(s)

prev = previous

 

 

cont. = continued

(prev…) = previously

 

 

def = definition(s)

pt = Part(s)

 

 

Dict = Dictionary

r = regulation(s)/Court rule(s)

 

 

disallowed = disallowed by Parliament

reloc = relocated

 

 

div = Division(s)

renum = renumbered

 

 

exp = expires/expired or ceases/ceased to have

rep = repealed

 

 

effect

rs = repealed and substituted

 

 

gaz = gazette

s = section(s)/subsection(s)

 

 

LA = Legislation Act 2003

/rule(s)/subrule(s)/order(s)/suborder(s)

 

 

LIA = Legislative Instruments Act 2003

sch = Schedule(s)

 

 

(md not incorp) = misdescribed amendment

SLI = Select Legislative Instrument

 

 

cannot be given effect

SR = Statutory Rules

 

 

mod = modified/modification

sub ch = Sub‑Chapter(s)

 

 

No. = Number(s)

sub div = Subdivision(s)

 

 

Ord = Ordinance

sub pt = Subpart(s)

 

 

 

underlining = whole or part not

 

 

 

commenced or to be commenced

 

 

 

 

Endnote 3—Legislation history

Name

Registration

Commencement

Application, saving and transitional provisions

ASIC Corporations (Factoring Arrangements) Instrument 2017/794

18/9/2017 (see F2017L01198)

19/9/2017

 

ASIC Corporations (Amendment) Instrument 2026/116

26/3/2026 (see F2026L00366)

27/3/2026

 

 

 

Endnote 4—Amendment history

Provision affected

How affected

Section 2

rep. s48D LA

Subsection 5(a) (note)

am. 2026/116

 

 

 

Overview

The ASIC Corporations (Factoring Arrangements) Instrument 2017/794, enacted in 2017 under the Corporations Act 2001, was introduced to address the need for streamlined regulation of factoring arrangements in the financial sector. This legislative instrument was established by the Australian Securities and Investments Commission (ASIC) to provide specific exemptions for certain financial services related to factoring arrangements, thereby facilitating more efficient business practices while maintaining necessary consumer protections. The primary policy objective is to exempt eligible sellers and other relevant parties from certain licensing, hawking, and disclosure obligations, provided they adhere to specific conditions including the provision of written terms and conditions and the maintenance of an internal dispute resolution system compliant with Australian standards. This instrument ensures that the financial services industry can operate more effectively without being overly burdened by regulatory requirements, as long as they meet the stipulated criteria. By doing so, it aims to balance the need for regulatory oversight with the practical requirements of businesses engaged in factoring activities.

Scope and Application

The ASIC Corporations (Factoring Arrangements) Instrument 2017/794 applies to certain financial services related to factoring arrangements under the Corporations Act 2001. Specifically, it provides exemptions from licensing, hawking, and disclosure obligations for "eligible persons," which include eligible sellers, purchasers of debt obligations under a factoring arrangement, and those providing financial services in relation to such arrangements. This instrument is applicable nationwide, covering all entities and individuals engaged in activities that involve factoring arrangements within Australia. The exemptions outlined in the instrument are contingent on certain conditions being met, such as providing written terms and conditions to retail clients and maintaining a compliant internal dispute resolution system. The instrument’s scope can be further refined or expanded through subordinate legislation, although the primary focus remains on ensuring compliance and consumer protection within the factoring arrangements sector.

Key Provisions

The ASIC Corporations (Factoring Arrangements) Instrument 2017/794 provides exemptions from certain licensing, hawking, and disclosure obligations for eligible persons under specific conditions. This legislative instrument, made under the Corporations Act 2001, exempts eligible persons from complying with certain provisions related to the provision of financial services and the making of offers of derivatives that are factoring arrangements (sections 5(a) to (c)). An eligible person, defined as an eligible seller, a purchaser of debt obligations under a factoring arrangement, or a provider of financial services in relation to such arrangements, is exempt from these obligations if they are an eligible seller or if they provide the terms and conditions of the factoring arrangement in writing to each retail client before the arrangement is issued and maintain an internal dispute resolution system compliant with Australian Standard AS ISO 10002-2006 (section 6). The Act imposes several obligations on parties involved in factoring arrangements. Eligible persons must ensure that if they are not eligible sellers, they provide the terms and conditions of the factoring arrangement to retail clients in writing before the arrangement is issued. Additionally, they must establish and maintain an internal dispute resolution system that complies with Australian Standard AS ISO 10002-2006 and covers complaints made by retail clients in connection with the provision of financial services related to factoring arrangements (section 6). These obligations ensure transparency and provide mechanisms for resolving disputes between parties. Breaches of the obligations and requirements set out in the ASIC Corporations (Factoring Arrangements) Instrument 2017/794 do not explicitly state specific offences, penalties, or civil/criminal consequences. However, failure to comply with the Act's general provisions related to financial services and disclosures could result in penalties under the Corporations Act 2001. These penalties may include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach and are subject to the broader regulatory framework provided by the Act. The legislative instrument also includes application, saving, and transitional provisions, as well as information about amending laws and the amendment history of provisions. Uncommenced amendments are not shown in the text of the compiled law, and any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). Any modifications affecting the law are also accessible on the Register, and self-repealing provisions are detailed in the endnotes. The endnotes also include information about the amendment history and the legislation history of the compiled law.

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Legislative Instrument
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Definitions & Interpretation
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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.