Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021

Administered by Department of the Treasury

Legislation au F2021L01290 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Corporations (Fees) Act 2001

Corporations (Fees) Amendment (Deferred Sales Model Exemptions)
Regulations 2021

Section 8 of the Corporations (Fees) Act 2001 (the Act) provides that the Governor-General may make regulations for the purposes of the prescribed sections of that Act, including prescribing fees for chargeable matters.

The purpose of the Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 (the Regulations) is to prescribe a fee that the Australian Securities and Investment Commission (ASIC) can charge to a person who makes an application to ASIC for an exemption from the deferred sales model.

The deferred sales model is set out in new subdivision DA of Division 2 of Part 2 of the Australian Securities and Investments Commission Act 2001 (the ASIC Act) and commences on 5 October 2021. Broadly, the deferred sales model prohibits the sale of add-on insurance products for four days after a customer has entered into a commitment to acquire the principal product or service.

Subsection 12DY(1) of the ASIC Act provides that ASIC may, by notifiable instrument, exempt an add-on insurance product or a class of add-on insurance products sold by a specified person from the prohibitions set out in the deferred sales model.

The Act provides that an application to ASIC for an exemption, or variation or revoking an exemption under subsection 12DY(1) of the ASIC Act is a chargeable matter (paragraph 4(1)(o)), and further provides that regulations may be made prescribing fees for chargeable matters (section 5).  The prescribed fees for a chargeable matter are specified in column 2 in the tables in Schedule 1 and 2 to the Corporations (Fees) Regulations 2001.

The Regulations amend the table in Schedule 1 to the Corporations (Fees) Regulations 2001 prescribing the fee for the chargeable matter set out in paragraph 4(1)(o) of the Act.

The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

Treasury consulted the public, including industry, about the amendment and has considered submissions. Treasury also consulted ASIC during the development of these Regulations.

Details of the Regulations are set out in Attachment A.

The Regulations are a legislative instrument for the purposes of the Legislation
Act 2003.

The Regulations commenced on the later of the day after they are registered and
5 October 2021.

The Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was certified as being informed by a process and analysis equivalent to a Regulation Impact Statement for the purposes of the Government decision to implement the deferred sales model. The implementation of the deferred sales model was estimated to increase compliance costs for industry by $16.46 million per year.

A statement of Compatibility with Human Rights is at Attachment B

 

ATTACHMENT A

Details of the Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021  

Section 1 – Name of the Regulations

This section provides that the name of the Regulations is the Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 (the Regulations).

Section 2 – Commencement

Schedule 1 to the Regulations commence the later of the day after the instrument is registered on the Federal Register of Legislation, and 5 October 2021.

Section 3 – Authority

The Regulations are made under the Corporations (Fees) Act 2001 (the Act).

Section 4 – Schedule

This section provides that each instrument that is specified in the Schedules to this instrument will be amended or repealed as set out in the applicable items in the Schedules, and any other item in the Schedules to this instrument has effect according to its terms.

Schedule 1 – Amendments

Corporations (Fees) Regulations 2001

The table in clause 1 of Schedule 1 to the Corporations (Fees) Regulations 2001 prescribe the fees for a chargeable matter for the purposes of subregulation 3(1) of those regulations.

Item 1 amends the table to insert new item 124A for applications to ASIC for an exemption or variation or revocation of an exemption, and specifies in column 2 of the table the prescribed fee for this chargeable matter is $3,487.  

ASIC administers fees in accordance with Regulatory Guide 21 How ASIC charges fees for relief applications. The methodology for calculating fees is in accordance with the Australian Government Cost Recovery Guidelines.

The prescribed amount of $3,487 is comparable to other prescribed fees for applications to ASIC for matters involving an exemption or declaration, or related variation of an exemption (for example, items 80 and 124 of the table in Schedule 1).

 


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021

This Legislative 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 of the Legislative Instrument

The purpose of the Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 (the Regulations) is to prescribe a fee that the Australian Securities and Investment Commission (ASIC) can charge to a person who makes an application to ASIC for an exemption from the deferred sales model set out in new subdivision DA of Division 2 of Part 2 of the Australian Securities and Investments Commission Act 2001 (the ASIC Act).

The Regulations amend the table in Schedule 1 to the Corporations (Fees) Regulations 2001 prescribing the fee for an application to ASIC for an exemption, or variation or revoking an exemption under subsection 12DY(1) of the ASIC Act.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 was enacted to establish a fee that the Australian Securities and Investment Commission (ASIC) can charge for applications seeking exemptions from the deferred sales model, which is designed to prevent the sale of add-on insurance products for four days following the commitment to acquire the principal product or service. The Regulations were made under the Corporations (Fees) Act 2001, and they amend the Corporations (Fees) Regulations 2001 to include this new fee structure. This legislative instrument was developed following consultations with the public and industry stakeholders, and it reflects the policy decision to implement the deferred sales model as recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The fee prescribed in the Regulations is $3,487, aligning with other fees for similar ASIC applications and in accordance with the Australian Government Cost Recovery Guidelines.

Scope and Application

The Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 applies to individuals or entities seeking exemptions from the deferred sales model under the Australian Securities and Investments Commission Act 2001. Specifically, it pertains to those applying to the Australian Securities and Investment Commission (ASIC) for exemptions or variations or revocations of exemptions from the prohibitions on selling add-on insurance products for four days after a customer commits to acquiring the principal product or service. These regulations are an extension of the Corporations (Fees) Act 2001, which provides the authority to prescribe fees for chargeable matters. The regulations set a fee of $3,487 for such applications, aligning with the fees for similar exemption-related applications to ASIC. This fee structure is detailed in Schedule 1 of the Corporations (Fees) Regulations 2001, where it is specified for the particular chargeable matter outlined in paragraph 4(1)(o) of the Act. The Regulations are applicable nationally and commence on the later of the day after they are registered and 5 October 2021. There are no specific exclusions or thresholds stipulated in the Act regarding who can apply for these exemptions, although the fee prescription is subject to the Australian Government Cost Recovery Guidelines and ASIC's regulatory practices.

Key Provisions

The Corporations (Fees) Amendment (Deferred Sales Model Exemptions) Regulations 2021 introduces a fee for applications to the Australian Securities and Investment Commission (ASIC) for exemptions from the deferred sales model. Under Section 8 of the Corporations (Fees) Act 2001, the Governor-General can make regulations to prescribe fees for certain matters, and the Regulations fall under this authority. The new fee applies to applications seeking exemption from the deferred sales model, which prohibits the sale of add-on insurance products for four days after a customer commits to acquire the principal product or service. The fee prescribed is $3,487, as specified in Schedule 1 of the Regulations. The Regulations impose obligations on parties making applications to ASIC for exemptions from the deferred sales model. Specifically, applicants must pay the prescribed fee of $3,487 when submitting their application. This fee is necessary for ASIC to process the application and consider whether to grant an exemption. The fee is calculated in accordance with the Australian Government Cost Recovery Guidelines and is comparable to other fees for similar applications involving exemptions or declarations. ASIC administers the fees in line with Regulatory Guide 21, ensuring a consistent approach to fee collection and processing. Breaches of the Regulations may not explicitly outline specific offences or penalties within the text provided. However, the failure to pay the prescribed fee when submitting an application for an exemption could result in ASIC not processing the application, potentially leaving the applicant subject to the deferred sales model's restrictions. Indirectly, this non-compliance could lead to regulatory or legal consequences for the applicant or the entity they represent if they proceed with sales in violation of the deferred sales model without the requisite exemption. The implications of such actions would depend on broader regulatory frameworks and ASIC's enforcement actions, which may include fines or other sanctions under the Australian Securities and Investments Commission Act 2001.

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Area of Law
Corporate Law & Governance
Financial Regulation
Instrument
Regulation
Concepts
Definitions & Interpretation
Fees
Licensing & Registration
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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.