ASIC Credit (Litigation Funding—Exclusion) Instrument 2020/37

Administered by Department of the Treasury

Legislation au F2020L00035 In force Legislative Instrument

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ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37

made under subsection 6(17) of the National Credit Code.
 

Compilation No. 2 

Compilation date: 13/12/2025

Includes amendments: F2025L01575

About this compilation

This compilation

This is a compilation of the ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37 that shows the text of the law as amended and in force on 13/12 /2025 (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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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—Exclusion

5 Litigation funding and proof of debt funding arrangements

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 Credit (Litigation Funding – Exclusion) Instrument 2020/37.

3 Authority

This instrument is made under subsection 6(17) of National Credit Code.

4 Definitions

In this instrument:

Code means the National Credit Code.

Note:  The Code is found in Schedule 1 to the National Consumer Credit Protection Act 2009.

Part 2—Exclusion

5 Litigation funding and proof of debt funding arrangements

(1) ASIC excludes from the application of the Code a provision of credit constituted by:

(a) an arrangement (a litigation funding arrangement) for participating in, conducting and funding legal proceedings brought by or on behalf of a person or persons; or

(b) an arrangement (a proof of debt funding arrangement) for proving claims made by a person or persons under Division 6 of Part 5.6 of the Corporations Act 2001 (including funding of the preparation and lodgment of the proofs).

(2) Subsection (1) applies until the end of 31 January 2029.

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 Credit (Litigation Funding—Exclusion) Instrument 2020/37

21/1/2020 (see F2020L00035)

22/1/2020

 

ASIC Corporations and Credit (Amendment and Repeal) Instrument 2022/1032

15/12/2022 (see F2022L01651)

16/12/2022

 

ASIC Corporations and Credit (Amendment) Instrument 2025/809

12/12/2025 (see F2025L01575)

13/12/2025

 

 

 

Endnote 4—Amendment history

Provision affected

How affected

Section 2

rep. s48D LA

Section 5

am. 2022/1032

Section 5

am. 2025/809

 

 

Overview

The ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37, made under subsection 6(17) of the National Credit Code, is a legislative instrument enacted to address specific gaps in the regulatory framework concerning litigation funding and proof of debt funding arrangements. This instrument was enacted by the Australian Securities and Investments Commission (ASIC) to provide clarity and exclusions from the application of the Code for certain types of credit arrangements. The primary policy objective of this legislative instrument is to ensure that the regulatory scope of the National Credit Code does not inadvertently encompass activities that are inherently different in nature, such as litigation funding and proof of debt funding arrangements, which are better regulated under other specific legal frameworks. The instrument excludes from the application of the Code any provision of credit that constitutes a litigation funding arrangement or a proof of debt funding arrangement, as defined. This exclusion is intended to streamline regulation by preventing the National Credit Code from applying to activities that are more appropriately governed by other statutes, such as the Corporations Act 2001. The exclusion applies until the end of 31 January 2029, providing a defined period for the assessment and potential revision of this regulatory approach.

Scope and Application

The ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37, made under subsection 6(17) of the National Credit Code, pertains specifically to credit arrangements that involve litigation funding and proof of debt funding. This legislative instrument applies to arrangements where credit is provided for the purpose of participating in, conducting, and funding legal proceedings or for proving claims made under the Corporations Act 2001. The exclusion applies to these specific types of credit arrangements until the end of 31 January 2029. This exclusion aims to clarify that certain credit activities related to litigation and proof of debt claims are not subject to the provisions of the National Credit Code during this period. The legislative instrument is in force from 22 January 2020 and has been amended on 16 December 2022 and 13 December 2025, with details of these amendments accessible on the legislative register. The exclusions are explicitly stated, and any further modifications or clarifications are made through subordinate instruments, ensuring that the scope of the exclusion remains precise and up-to-date.

Key Provisions

The main operative sections of the ASIC Credit (Litigation Funding – Exclusion) Instrument 2020/37 (sections 1 to 5) establish the legislative instrument's name, authority, definitions, and the exclusion of certain credit provisions from the National Credit Code. Specifically, section 5(1) states that a provision of credit constituted by an arrangement for participating in, conducting and funding legal proceedings (litigation funding arrangement) or an arrangement for proving claims under the Corporations Act 2001 (proof of debt funding arrangement) is excluded from the Code. This exclusion applies until the end of 31 January 2029, as per section 5(2). The Act imposes specific obligations on parties and entities it governs by excluding litigation funding and proof of debt funding arrangements from the Code's application. This means that these types of credit arrangements are not subject to the usual regulatory requirements and restrictions that apply to other credit provisions under the National Credit Code. The exclusion is clearly defined in section 5(1) and is in effect until the specified end date. The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, it is important to note that the exclusion is strictly time-bound, and any deviation from the defined scope of the exclusion could potentially result in the credit arrangements being subject to the Code's regulatory requirements. Given that the penalties for breaching the National Credit Code can be significant, it is crucial for entities to ensure compliance with the exclusion provisions until the specified end date. Penalties for breaches of the Code can include substantial fines and, in some cases, criminal charges.

Legal classification tags

Area of Law
Consumer Law
Financial Services Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Exclusions & Exclusions
Regulatory Standards

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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.