ASIC Credit (Updated Details for Prescribed Disclosure) Instrument 2026/122

Explanatory Statement

ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122

This is the Explanatory Statement for ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122 (Instrument).

The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).

Summary

1.              The Instrument declares that Part 3–7 of the National Consumer Credit Protection Act 2009 (National Credit Act) applies as if Schedule 5A to the National Consumer Credit Protection Regulations 2010 (Credit Regulations) was modified to update the prescribed disclosure information.

Purpose of the instrument

1.              The Instrument remakes relief previously provided in ASIC Credit (Updated details for prescribed disclosure) Instrument 2016/200 (Instrument 2016/200).
2.              Credit licensees that provide credit assistance in relation to, or enter into, reverse mortgages are required to give to consumers, and make available on the licensee’s website, a Reverse Mortgage Information Statement (RMIS) in the form prescribed in Schedule 5A to the Credit Regulations.
3.              The prescribed RMIS in Schedule 5A to the Credit Regulations includes information about an information service provided by the National Information Centre on Retirement Investments (NICRI). The NICRI no longer exists, and accordingly, this information is no longer required.
4.              In 2016, ASIC made Instrument 2016/200 following a request by Treasury that ASIC exercise its modification powers under the National Credit Act to update disclosure information that was no longer correct.
5.              The Instrument remakes the relief previously available under Instrument 2016/200 by modifying the form of the prescribed RMIS to remove the reference to the information service provided by the NICRI.

Consultation

1.              Before making the Instrument, ASIC undertook a streamlined public consultation inviting feedback on the proposed remake of the relief under paragraph 5(a) of Instrument 2016/200 as set out in CS 41 Proposed remake of miscellaneous technical relief and updated credit disclosure instruments. The proposal did not include remaking the relief under paragraphs 5(b) and (c) of Instrument 2016/200, as the provisions of the Credit Regulations to which those paragraphs relate had been repealed.
2.              The consultation ran from 4 December 2025 to 23 January 2026 and involved the publication of a news item and a consultation webpage on ASIC’s website attaching a draft legislative instrument. ASIC did not receive any submissions, and no changes were made to the draft legislative instrument following the consultation.

Operation of the instrument

Part 1 – Preliminary

1.              Section 1 of the Instrument specifies the title of the Instrument.
2.          Section 2 of the Instrument specifies that the Instrument commences on the day after it is registered on the Federal Register of Legislation.
3.          Section 3 of the Instrument specifies that it is made under paragraph 163(3)(d) of the National Credit Act.
4.          Section 4 of the Instrument provides that each instrument included in a schedule to the Instrument is amended or repealed. Schedule 1 to the Instrument repeals Instrument 2016/200.
5.          Section 5 of the Instrument provides a simplified outline for the Instrument. Its purpose is to assist readers in understanding the substantive provisions. However, the outline is not intended to be comprehensive. Readers should rely on the substantive provisions when considering the Instrument’s effect.
6.          Section 6 of the Instrument specifies definitions to be relied upon in the Instrument.

Part 2 – Declaration

1.          Section 7 of the Instrument provides that the provisions to which Part 3-7 of the National Credit Act applies, apply in relation to a credit licensee as if Schedule 5A to the Credit Regulations were modified or varied to omit the last paragraph under the heading ‘Sources of other information’, including Note 3.

Legislative instrument and primary legislation 

1.          The subject matter and policy implemented by the Instrument are more appropriate for a legislative instrument rather than primary legislation because it provides relief where strict compliance with the primary legislation produces anomalous outcomes that would be inconsistent with the intent of the primary law.
2.          The Instrument is made under powers specifically delegated to ASIC to modify or affect the operation of the National Credit Act to provide a tailored and flexible regulatory environment that is fit for purpose. 
3.          It will be a matter for the Government and for Parliament as to whether the National Credit Act or Credit Regulations may be amended in future to include the relief in the Instrument.

Duration of the instrument

1.          The Instrument self-repeals at the start of 1 April 2031. This allows sufficient time for the Government and for Parliament to determine whether to amend the primary legislation to include the relief in the Instrument.

Legislative authority

1.          The Instrument is a disallowable legislative instrument made under paragraph 163(3)(d) of the National Credit Act. Paragraph 163(3)(d) provides that ASIC may declare that provisions to which Part 3-7 of the National Credit Act applies apply in relation to a class of persons as if specified provisions were modified or varied.

Statement of Compatibility with Human Rights 

1.          The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.

Attachment

Statement of Compatibility with Human Rights

This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.  

ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122

Overview

1.              The ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122 modifies the form of the Reverse Mortgage Information Statement prescribed in Schedule 5A to the National Consumer Credit Protection Regulations 2010 to remove the reference to the information service provided by the National Information Centre on Retirement Investments (NICRI) because the NICRI no longer exists.

Assessment of human rights implications

2. This instrument does not engage any of the applicable rights or freedoms.
 

Conclusion

3. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.