ASIC Corporations (Generic Calculators) Instrument 2016/207

Administered by Department of the Treasury

Legislation au F2016L00438 Not in force Legislative Instrument

Legislation content

ASIC Corporations (Generic Calculators) Instrument 2016/207

 

About this compilation

 

Compilation No. 5

 

This is a compilation of ASIC Corporations (Generic Calculators) Instrument 2016/207 as in force on 1 January 2023. 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 Authority

4 Definitions

Part 2—Exemption

5 Exemption for providers of financial calculators

6 Conditions

Endnotes

Endnote 1—Instrument history

Endnote 2—Amendment history

Part 1—Preliminary

1 Name of legislative instrument

This instrument is ASIC Corporations (Generic Calculators) Instrument 2016/207.

3 Authority

This instrument is made under paragraphs 926A(2)(a) and 951B(1)(a) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

assumptions means the factors (which may be changed by the user) that are applied by a financial calculator in working out the estimate.

estimate means the result of a numerical calculation performed by a financial calculator.

financial calculator means a facility, device, table or other thing used to make a numerical calculation or find out the result of a numerical calculation relating to a financial product, other than a superannuation calculator.

Note:  The facility, device, table or other thing will not be a financial calculator to the extent that its output goes beyond the numerical result of a calculation and a description of what that result is. For example, an electronic facility will not be a financial calculator to the extent that it makes a recommendation about a particular financial product.

 

 

present value of an estimate worked out by a financial calculator of an amount payable at a future time is the amount worked out using the following formula:

 

 

 

 

where:

 

C is the estimate of the amount payable at the future time.

 

n is the number of years and part years between the present date and the future time that the amount is payable; and

 

r is 0.025 or such other assumed inflation rate (expressed as a decimal fraction) as is inputted by the user of the calculator.

Note:    The default formula assumes an inflation rate of 2.5% (being the mid-point of the Reserve Bank of Australia’s target range for inflation over the cycle).

 

statutory assumption means an assumption that reflects a rate or amount fixed by legislation.

Note:  Statutory assumptions include a rate of taxation.

 

superannuation calculator means a facility, device, table or other thing that relates to a superannuation product or an RSA product.

Note:    A superannuation calculator may relate to something else (whether or not a financial product) in addition to relating to a superannuation product or an RSA product (e.g. a superannuation calculator may also relate to the age pension).

Part 2—Exemption

5 Exemption for providers of financial calculators

(1) A person who provides financial product advice through, or through making available, a financial calculator does not have to comply with:

(a) the requirement in subsection 911A(1) of the Act to hold an Australian financial services licence covering the provision of that advice; and

(b) where the person is a financial services licensee—Divisions 2, 3 and 4 of Part 7.7 of the Act in relation to that advice.

(2)    The exemption in subsection (1) does not apply to a person if 30 days have elapsed since the person knew or was reckless with respect to whether there are reasonable grounds to believe that the person has failed, other than in an immaterial respect, to comply with a condition of this instrument without full particulars of the failure having been notified to ASIC (to the extent that the person knows those particulars or would have known them if they had undertaken reasonable enquiries).

6 Conditions

(1) A person who relies on the exemption in subsection 5(1) must take reasonable steps to ensure all of the following:

(a) the financial calculator does not advertise or promote a specific financial product;

(b) if the financial calculator is an electronic facility or device, the financial calculator:

(i) enables the user to change any of the assumptions (the default assumptions) that are applied by the calculator in working out the estimate relating to a financial product other than a statutory assumption; and

Note:  The financial calculator does not have to involve the application of any statutory assumptions; but if it does, it may permit the user to change them.

(ii) works out or enables the user to work out an estimate on the basis of the changed assumptions;

(c) the default assumptions, including any statutory assumptions, applied by the financial calculator, unless changed by the user, are reasonable for the purposes of working out the estimate;

(d) the financial calculator displays to the user in the ordinary course of its use or has printed on it all of the following:

(i)  a clear and prominent statement about the purpose and limitations of the calculator;

(ii) a clear and prominent explanation of the impact of any significant limitation of the calculator;

(iii) a clear and prominent statement of the assumptions;

(iv) where the estimate is of an amount payable at a future time of 2 or more years, a clear and prominent statement setting out the present value of the calculation or estimate; and  

(v) a clear and prominent statement to the effect that the financial calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product and that they should consider obtaining advice from a financial services licensee before making any financial decisions;

(e)  the financial calculator displays to the user (including because of a step taken by the user) or has printed on it an explanation of why the default assumptions, including any statutory assumption, are reasonable for the purpose of working out the estimate;

(f)  if the financial calculator is an electronic facility or device— the financial calculator does not prevent the user from readily printing or electronically storing the estimate;

(g) the person keeps a copy of the financial calculator for 7 years from when it is first made available.

(2)  A statement or explanation required under paragraph (1)(d) or (e) must contain as much detail as a retail client using the financial calculator would reasonably expect to find having regard to the nature of the calculator.

Endnotes

Endnote 1—Instrument history

Instrument number

Date of FRL registration

Date of commencement

Application, saving or transitional provisions

2016/207

30/3/2016 (see F2016L00438)

31/3/2016

 

2016/1090

7/12/2016 (see F2016L01883)

8/12/2016

-

2018/40

13/3/2018 (see F2018L00241)

14/3/2018

-

2019/514

4/6/2019 (see F2019L00724)

5/6/2019

-

2022/604

30/06/2022 (see F2022L00894)

1/07/2022

1/01/2023 (Sch 2)

-

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 4

am. 2016/1090; 2019/514 and 2022/604

Section 5

am. 2022/604

Subparagraph 6(1)(d)(iv)

rs. 2019/514; rs. 2022/604

Section 7

rs.  2016/1090 and 2018/40

am. 2019/514

rep. 2022/604

 

 

Overview

The ASIC Corporations (Generic Calculators) Instrument 2016/207 was enacted to provide an exemption for providers of financial calculators from certain requirements under the Corporations Act 2001. This legislative instrument was made by the Australian Securities and Investments Commission (ASIC) under the authority of the Corporations Act 2001, aiming to facilitate the use of generic financial calculators by financial product providers while ensuring consumer protection. The primary objective is to allow the use of generic financial calculators for providing numerical estimates relating to financial products, subject to certain conditions, thereby promoting accessibility and convenience for consumers while maintaining regulatory standards. The instrument provides an exemption from specific licensing and regulatory requirements for those who provide financial product advice through or by making available a financial calculator. To qualify for this exemption, the calculator must not advertise or promote a specific financial product, must allow users to change default assumptions (excluding statutory assumptions), and must display clear statements about the purpose, limitations, and assumptions of the calculator. Furthermore, the calculator must not prevent users from printing or storing the estimates, and providers must retain a copy of the calculator for seven years. This exemption aims to strike a balance between fostering innovation in financial product advice and safeguarding consumers from potentially misleading or inadequate information.

Scope and Application

The ASIC Corporations (Generic Calculators) Instrument 2016/207 applies to persons providing financial product advice through, or making available, a financial calculator in Australia. This legislative instrument exempts these individuals from certain requirements under the Corporations Act 2001, such as holding an Australian financial services licence for providing such advice and complying with specific sections of the Act if they are already a financial services licensee. The exemption, however, does not apply if the person has been aware for over 30 days that they have failed to comply with a condition of the instrument without notifying ASIC. To benefit from the exemption, the person must take reasonable steps to ensure the financial calculator does not advertise specific financial products, enables users to change certain assumptions, displays clear statements about the calculator's purpose, limitations, assumptions, and the present value of estimates, and includes a disclaimer advising users to seek advice from a financial services licensee before making financial decisions. The calculator must also allow users to print or store estimates and the provider must keep a copy for seven years. The instrument's authority stems from specific paragraphs of the Corporations Act 2001, and its application is governed by the legislative framework of Australia.

Key Provisions

The ASIC Corporations (Generic Calculators) Instrument 2016/207 (the "Instrument") provides certain exemptions and sets out conditions for providers of financial calculators under the Corporations Act 2001. Section 5 of the Instrument exempts providers of financial product advice through a financial calculator from certain licensing requirements and obligations under the Act. However, this exemption does not apply if the provider knew or was reckless about failing to comply with the conditions of the Instrument for 30 days. The conditions that must be met in order to rely on this exemption are detailed in section 6 of the Instrument. Providers must take reasonable steps to ensure the calculator does not advertise specific financial products, enables users to change assumptions (excluding statutory assumptions), and displays statements about the purpose, limitations, assumptions, and present value of the estimate (where applicable). The calculator must also provide an explanation of why the default assumptions are reasonable and allow users to print or store the estimate. Additionally, providers must keep a copy of the calculator for seven years. Failure to comply with the conditions of the Instrument may result in civil or criminal penalties. Section 13 of the Act outlines the civil penalty provisions, which include pecuniary penalties for contraventions of the Act. The maximum penalty for a corporation is $210,000, and for an individual is $42,000. Section 1311 of the Act outlines the criminal penalties, which include imprisonment, fines, or both, for serious or repeated contraventions. The maximum penalties vary depending on the offence, but can include fines of up to $210,000 for corporations and $42,000 for individuals, and/or imprisonment for up to five years. In summary, the ASIC Corporations (Generic Calculators) Instrument 2016/207 provides certain exemptions from licensing requirements and sets out conditions for providers of financial calculators. Providers must take reasonable steps to ensure the calculator meets the specified conditions, failure to do so may result in civil or criminal penalties under the Act.

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Licensing & Registration
Compliance Obligations
Exemptions & Exclusions

Interactions

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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.