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

Administered by Department of the Treasury

Legislation au F2026L00364 In force Legislative Instrument

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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.

 

Overview

The ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122, approved by the Australian Securities and Investments Commission (ASIC), updates the prescribed disclosure requirements for credit licensees providing reverse mortgages under the National Consumer Credit Protection Act 2009. This instrument modifies the form of the Reverse Mortgage Information Statement (RMIS) to remove outdated information about an information service previously provided by the National Information Centre on Retirement Investments (NICRI), which no longer exists. This update aims to ensure that consumers receive accurate and relevant information. The instrument was developed following a request from Treasury and a streamlined public consultation, with no submissions received. The instrument is set to self-repeal on 1 April 2031, providing time for potential future legislative amendments by the Government and Parliament.

Scope and Application

The ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122 applies to credit licensees who provide credit assistance in relation to, or enter into, reverse mortgages. These credit licensees are mandated to provide consumers with a Reverse Mortgage Information Statement (RMIS) in the prescribed form, which has now been updated to remove outdated references. This Instrument ensures that the disclosures remain relevant and accurate, reflecting the current state of affairs in the credit industry. The geographic and jurisdictional reach of this Instrument is Commonwealth, as it pertains to the National Consumer Credit Protection Act 2009, which is a federal statute. The Instrument itself is a legislative instrument made under the authority of the Australian Securities and Investments Commission (ASIC) and is subject to the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring compatibility with human rights. The Instrument does not specify any exclusions or exemptions and operates by modifying Schedule 5A to the National Consumer Credit Protection Regulations 2010. The Instrument is set to self-repeal on 1 April 2031, allowing time for potential future amendments to the primary legislation by the Government and Parliament.

Key Provisions

The ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122 amends the National Consumer Credit Protection Act 2009 (National Credit Act) by modifying the prescribed disclosure requirements for reverse mortgages. Section 7 of the Instrument declares that Part 3-7 of the National Credit Act applies in relation to credit licensees as if Schedule 5A to the National Consumer Credit Protection Regulations 2010 (Credit Regulations) was modified to omit the reference to the National Information Centre on Retirement Investments (NICRI). This change is necessary because the NICRI no longer exists, rendering the previous disclosure requirement outdated. The Instrument, therefore, removes the obligation for credit licensees to include information about the NICRI in the Reverse Mortgage Information Statement (RMIS). Credit licensees governed by this Instrument must ensure that the RMIS provided to consumers and made available on their websites is updated to reflect the changes made by the Instrument. Specifically, they must omit any reference to the NICRI and ensure the RMIS is compliant with the modified Schedule 5A. This requirement is aimed at ensuring that consumers receive accurate and relevant information about their reverse mortgage products. Failure to comply with the updated disclosure requirements may result in legal repercussions for the credit licensees. The Instrument does not introduce new offences or penalties but relies on the existing provisions of the National Credit Act. Credit licensees who fail to comply with the updated disclosure requirements may face enforcement actions by ASIC, which could include fines, public reprimands, or other regulatory sanctions. The severity of the consequences would depend on the nature and extent of the non-compliance, as well as any resulting harm to consumers. The Instrument's self-repeal at the start of 1 April 2031 allows the Government and Parliament to consider whether to incorporate the relief into primary legislation in the future.

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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.