ASIC is seeking feedback on its proposal to remake a legislative instrument to allow Australian Financial Services (AFS) licensees to pay clients’ money into a cash common fund.
ASIC Corporations (Client money - Cash common funds) Instrument 2016/671 is due to expire on 1 October 2026.
ASIC is proposing to remake this instrument because we have assessed the instrument is operating effectively and continues to form a necessary and useful part of the legislative framework. The effect of this instrument will remain unchanged when remade.
Providing feedback
Submissions should be sent to rri.consultation@asic.gov.au by 5 pm AEST on Tuesday 19 May 2026.
Background
Instrument 2016/671 enables client money received by an AFS licensee to be deposited into a cash common fund if the fund is also a registered scheme. It gives flexibility to licensees in dealing with client money while retaining the consumer protections provided by s981B of the Corporations Act 2001 (Corporations Act).
This instrument extended the relief that was provided in ASIC Class Order [CO 04/1063].
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ASIC is Australia’s corporate, markets and financial services regulator.