ASIC Corporations (Mortgage Investment Schemes) Instrument 2017/857

ASIC Corporations (Mortgage Investment Schemes) Instrument 2017/857

made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001

Compilation No. 2 

Compilation date: 27/03/2026

Includes amendments: F2026L00366

About this compilation

This compilation

This is a compilation of the ASIC Corporations (Mortgage Investment Schemes) Instrument 2017/857 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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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—Exemptions

5 Mortgage investment schemes with no more than 20 investors

6 Registering a scheme in relation to individual mortgage loans

7 Small industry-supervised mortgage investment schemes

Part 3—Declaration

8 Withdrawal rights for registered mortgage investment schemes

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 (Mortgage Investment Schemes) Instrument 2017/857.

3 Authority

This instrument is made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

mortgage investment scheme means a managed investment scheme that has, or is likely to have, at least 50% of non-cash assets invested in mortgage loans, and 100% of assets invested in mortgage loans or in an account with an Australian ADI.

mortgage loan means a loan secured by a mortgage over real property.

Part 2—Exemptions

5 Mortgage investment schemes with no more than 20 investors

Registration relief

(1) An operator of a mortgage investment scheme does not have to comply with subsection 601ED(5) of the Act in relation to the operation of the scheme.

Licensing relief

(2) An operator of a mortgage investment scheme does not have to comply with the requirement in subsection 911A(1) of the Act to hold an Australian financial services licence covering the provision of financial services in relation to interests in the scheme.

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.

(3) A person (other than a person to whom subsection (2) applies) does not have to comply with the requirement in subsection 911A(1) of the Act to hold an Australian financial services licence covering the provision of financial services in relation to interests in a mortgage investment scheme in relation to which paragraphs (7)(a) to 7(c) appear to be satisfied except where the person is aware, or ought reasonably to be aware, that those paragraphs are not satisfied in relation to the scheme.

Hawking relief

(4) An operator of a mortgage investment scheme does not have to comply with section 992A of the Act in relation to an offer of an interest in the scheme to a person in the course of, or because of, an unsolicited contact with the person.

Financial product disclosure relief

(5) An operator of a mortgage investment scheme does not have to comply with Part 7.9 of the Act in relation to any of the following:

(a) a recommendation to acquire an interest in the scheme;

(b) an offer to issue or sell an interest in the scheme;

(c) the issue or sale of an interest in the scheme.

(6) A person (other than a person to whom subsection (5) applies) does not have to comply with Part 7.9 of the Act in relation to either of the following:

(a) a recommendation to acquire an interest in a mortgage investment scheme;

(b) an offer to arrange the issue of an interest in a mortgage investment scheme;

in relation to which paragraphs (7)(a) to (7)(c) appear to be satisfied except where the person is aware, or ought reasonably to be aware, that those paragraphs are not satisfied in relation to the scheme.

Where exemptions apply

(7) The exemptions in subsections (1), (2), (4), and (5) are only available where all of the following are satisfied:

(a) the scheme, together with any other managed investment scheme operated by the operator or by an associate of the operator that has assets invested in mortgage loans, has no more than 20 members; and

(b) the operator, and any associate of the operator, does not operate a mortgage investment scheme registered under section 601EB of the Act; and

(c)  except for the scheme, together with any other managed investment scheme referred to in paragraph (a), or any managed investment scheme that forms part of those schemes, the operator is not in the business of promoting managed investment schemes.

6 Registering a scheme in relation to individual mortgage loans

Registration relief

An operator of a mortgage investment scheme registered under section 601EB of the Act does not have to comply with subsection 601ED(5) of the Act to the extent that it would require the operator to register a scheme in relation to each mortgage loan in relation to which the scheme operates.

Note: See also the declaration relating to withdrawal rights in section 8 of this instrument.

1.                Small industry-supervised mortgage investment schemes

Transitional continuation of relief given by ASIC Class Order [CO 02/238]

(1) The exemption set out in ASIC Class Order [CO 02/238] in the paragraph under the heading “4 Small industry-supervised schemes” as in force immediately before its repeal, continues to apply by force of this subsection, in the circumstances and on the conditions specified in relation to the exemption.

(2) Subsection (1) has effect for a period of 1 year commencing on the day this instrument commences.

Part 3—Declaration

1.                Withdrawal rights for registered mortgage investment schemes

Chapter 5C of the Act applies to all persons in relation to a mortgage investment scheme in respect of which the operator has relied on the exemption in section 6 as if subsection 601GA(4) and Part 5C.6 were modified or varied as follows:

(a) after “members” (wherever appearing, other than at the end of subsection 601GA(4), in paragraph 601KB(2)(b), in subsection 601KB(4) and in section 601KE), inserting:

(i)  in subsection 601KB(1) (wherever appearing) and in the formula in section 601KD:

“who have an interest in the particular mortgage loan”; and

(ii) otherwise, “who have an interest in a particular mortgage loan”;

(b)  in paragraph 601KB(2)(b), after “members of the scheme” and “members of a particular class”, inserting “who have an interest in the particular mortgage loan”;

(c) in subsection 601KA(3), after “member” , inserting “who has an interest in a particular mortgage loan”;

(d) in the formula in section 601KD, after “member”, inserting “who has an interest in the particular mortgage loan”;

(e) after “withdraw from the scheme” (wherever appearing) and “withdraw, wholly or partly, from the scheme” (in subsection 601KB(1)), inserting “in relation to the particular mortgage loan”;

(f) after “scheme is liquid” (wherever appearing), inserting

(i) in subsection 601KA(4), “in relation to a particular mortgage loan”; and

(ii) otherwise, “in relation to the particular mortgage loan”;

(g) after “scheme is not liquid” (wherever appearing) and “scheme that is not liquid” (wherever appearing), inserting:

(i) in subsection 601KB(1) and sections 601KC, 601KD and 601KE, “in relation to a particular mortgage loan”; and

(ii) otherwise, “in relation to the particular mortgage loan”;

(h) in subsection 601KA(4), after “liquid assets”, inserting “in relation to the particular mortgage loan”;

(i) in subsections 601KA(5) and (6), after “liquid assets” and “liquid asset”, inserting “in relation to a particular mortgage loan”;

(j) in subsection 601KA(4), after “scheme property”, inserting “in relation to the particular mortgage loan”.

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