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ASIC proposes to remake relief instruments for AFS licensees and overseas banks

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ASIC is seeking feedback on a proposal to remake relief instruments for Australian financial services (AFS) licensees and foreign authorised deposit-taking institutions (ADIs).

ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186 and ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229 (the Instruments) are due to sunset on 1 April 2026 and automatically repeal on 1 May 2026 respectively.

We have assessed that the instruments are operating effectively and continue to form a necessary part of the legislative framework.

The relief provided under the Instruments will remain largely unchanged other than an amendment to a relief condition, and clarification of a note under Section 5(2) of ASIC Instrument 2016/186. Other minor changes have been made to ensure the relief is up-to-date and current.

Providing feedback 

Please send your submissions to rri.consultation@asic.gov.au by 5pm AEDT on Friday 23 January 2026.

Refer to CS 40 Proposed remake of relief instruments for AFS licensees and overseas banks

Background

Under the Legislation Act 2003, all legislative instruments are automatically repealed, or ‘sunset’, after 10 years, unless ASIC takes action to preserve them.

Financial reporting and record keeping relief

ASIC Instrument 2016/186 exempts:

  • foreign licensees from certain record keeping obligations, as well as the requirement to lodge financial statements and have them audited under Div 6 of Pt 7.8 of the Corporations Act, and
  • foreign ADIs from the requirement to hold an AFS licence when dealing in derivatives and foreign exchange contracts on their own behalf.

Financial requirements – treatment of lease assets relief

ASIC Instrument 2021/229 specifies that a right-of-use asset under a lease is not an excluded asset for the purposes of an AFS licensee’s general duty to comply with its licence conditions. This allows certain AFS licensees when calculating their financial resource requirements to include a right-of-use asset under a lease in the calculation of their net tangible assets and, where applicable, adjusted surplus liquid funds and surplus liquid funds.

 

ASIC is Australia’s corporate, markets and financial services regulator.