The new legislative instruments were made after industry consultation. They are set to expire on 1 October 2028.

Financial resource requirements

The new legislative instruments relating to financial requirements are:

• ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647. This applies to responsible entities of registered schemes, investor-directed portfolio service (IDPS) operators and corporate directors of retail corporate collective investment vehicles (CCIVs).
• ASIC Corporations (Financial Requirements for Custodial or Depository Service Providers) Instrument 2023/648. This applies to licensed custodians.

ASIC made these new instruments after considering the submissions received in response to Consultation Paper 367 Remaking ASIC class orders on financial requirements: [CO 13/760], [CO 13/761] and ASIC Instrument 2022/449 (LI 2022/449). Respondents to CP 367 generally supported ASIC’s proposals to issue the two new legislative instruments with minor amendments.

CO 13/760 and CO 13/761 were due to sunset on 1 October 2023 and LI 2022/449 was due to sunset on 1 October 2024.

To reflect the terms of the new legislative instruments and address key issues covered in Report 769 Response to submissions on CP 367 Remaking ASIC class orders on financial requirements, ASIC has also updated Regulatory Guide 166 AFS licensing: Financial requirements.

Platforms

Two legislative instruments were made in relation to IDPSs and IDPS-like schemes, which are commonly referred to as platforms.

• ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668
• ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669

ASIC made these new instruments after considering industry submissions received in response to Consultation Paper 369 Remaking ASIC class orders on platforms: [CO 13/762] and [CO 13/763] (CP 369), proposing to continue the relief currently given by the Instruments, without any significant changes.

[CO 13/762] and [CO 13/763] were due to sunset on 1 October 2023. The new instruments replace these class orders with minor changes:

• both instruments allow operators to provide clients (including pre-existing clients) with electronic access to near real-time information about their investments without the clients’ prior agreement to obtaining information in this way, and
• ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669, which remade [CO 13/763], now clearly provides that an investor directed portfolio service (IDPS) operator must comply with section 1017E of the Corporations Act 2001 when dealing with money received from an IDPS member for a financial product before the product is issued.

Read the non-confidential submissions received in response to CP 369.

Background

Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a period unless ASIC takes action to preserve them. This ensures that legislative instruments like class orders are kept up-to-date and only remain in force while they are fit for purpose and relevant.

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