ASIC has issued a new information sheet for operators of employee entitlement schemes outlining our approach to regulation of these schemes under the Corporations Act 2001 (Corporations Act), commencing 1 April 2026.
In November 2025, ASIC announced that operators of employee entitlement schemes will be subject to additional transparency and governance requirements and need to apply to ASIC for an Australian financial services (AFS) licence by 1 September 2026.
Information Sheet 295 Employee entitlement schemes (INFO 295) explains:
- transitional relief that will be available for operators from 1 April 2026 until an AFS licence is granted by ASIC
- the process for an operator to apply for an AFS licence with the relevant authorisations by 1 September 2026, and
- obligations that will apply to operators under the Corporations Act and conditions of ASIC’s ongoing relief.
ASIC will make a new legislative instrument in March 2026 to provide transitional and ongoing relief to operators of employee entitlement schemes from certain provisions of the Corporations Act.
We will undertake targeted consultation with operators of existing schemes prior to finalising the instrument.
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Information Sheet 295 Employee entitlement schemes
Background
The primary objective of an employee entitlement scheme is to fund benefits payable to employees upon termination of employment, or long-service leave entitlements.
Currently, operators of employee entitlement schemes have relief from the AFS licensing, managed investment and associated provisions of the Corporations Act under ASIC Corporations (Employee redundancy funds relief) Instrument 2015/1150 until 1 April 2026.
ASIC is Australia’s corporate, markets and financial services regulator.