ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795

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Legislation au F2017L01199 In force Legislative Instrument

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ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795

made under paragraph 926A(2)(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 (Mortgage Offset Accounts) Instrument 2017/795 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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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 Licensing exemption for mortgage offset account services

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 Offset Accounts) Instrument 2017/795.

3 Authority

This instrument is made under paragraph 926A(2)(a) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

mortgage offset account means a deposit product that is a facility in relation to which either of the following applies:

(a) the amount standing to the credit of the facility from time to time is notionally offset against the balance of a loan entered into by the depositor with the provider of the facility, and interest on the loan is calculated by reference to the notionally-reduced loan balance;

(b) interest payable on a loan entered into by the depositor with the provider of the facility is periodically reduced by an amount that would otherwise accrue as interest or other earnings on the amount standing to the credit of the facility from time to time.


Part 2—Exemption

5 Licensing exemption for mortgage offset account services

A person who provides financial services does not have to comply with subsection 911A(1) of the Act for the provision of any of the following financial services:

(a) financial product advice relating to a mortgage offset account;

(b) arranging for another person to apply for, acquire, vary or dispose of a mortgage offset account.

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.

 

 

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 (Mortgage Offset Accounts) Instrument 2017/795

18/9/2017 (see F2017L01199)

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

Section 5 (note)

am. 2026/116

 

 

 

Overview

The ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795 was enacted to provide specific regulatory relief concerning mortgage offset accounts, aiming to streamline financial services related to these accounts. This legislative instrument was made under paragraph 926A(2)(a) of the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC), an entity established to regulate financial markets and financial services in Australia. The primary policy objective behind this instrument is to simplify compliance requirements for financial service providers dealing with mortgage offset accounts, thereby fostering a more efficient financial services environment. By exempting certain services from the need for an Australian financial services licence, the instrument seeks to reduce regulatory burdens while maintaining consumer protection standards.

Scope and Application

The ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795, made under paragraph 926A(2)(a) of the Corporations Act 2001, pertains to the provision of financial services related to mortgage offset accounts, specifically exempting certain activities from the requirement for an Australian financial services licence. This legislative instrument applies to persons who provide financial services, and it defines a mortgage offset account as a deposit product where the credit balance is notionally offset against a loan balance or where interest on the loan is reduced by the interest that would accrue on the deposit balance. Notably, this exemption applies to advice and arrangements concerning mortgage offset accounts, simplifying compliance for entities that offer such services. The instrument extends its reach nationally across Australia, aligning with the broader Corporations Act 2001, which governs corporate activities and financial services within the Commonwealth. While the primary Act and its amendments are nationally applicable, the instrument itself came into force on 19 September 2017, with subsequent amendments taking effect on 27 March 2026, reflecting the legislative intent to streamline financial service provisions for mortgage offset accounts.

Key Provisions

The ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795, made under paragraph 926A(2)(a) of the Corporations Act 2001, primarily concerns the licensing exemption for mortgage offset account services. Specifically, section 5 of the instrument states that a person who provides financial services does not need to comply with subsection 911A(1) of the Act when offering financial product advice relating to a mortgage offset account or arranging for another person to apply for, acquire, vary or dispose of such an account (section 5(a) and (b)). This exemption applies to the provision of these specific services regarding mortgage offset accounts, which are defined under the instrument as deposit products that offset the credit balance against the balance of a loan with the provider, or reduce the interest on a loan by an amount that would otherwise accrue on the deposit (section 4). The Act imposes certain obligations on financial service providers regarding mortgage offset accounts, primarily through the exemption outlined in section 5. Providers of financial services must ensure that they are aware of and comply with this exemption when providing services related to mortgage offset accounts. They must also be aware of other related instruments, such as the ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115, which provides further relief from certain licensing requirements under the Act for specific circumstances (note to section 5). There are no explicit offences, penalties, or civil/criminal consequences outlined in the instrument for breach of its provisions. However, non-compliance with the broader Corporations Act 2001 could result in penalties, including fines and imprisonment. The specific penalties for breaches of the Corporations Act would depend on the nature and severity of the breach, and are not detailed within the instrument itself. The Act provides for various penalties, including fines of up to $210,000 for individuals and $1,050,000 for bodies corporate, depending on the offence (Corporations Act 2001, sections 1317E and 1317G). Additionally, imprisonment terms may apply, with maximum penalties varying based on the specific breach.

Legal classification tags

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

Interactions

Authorises

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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.