ASIC has remade a legislative instrument that allows Australian Financial Services (AFS) licensees to place client money in cash common funds.
The new instrument, ASIC Corporations (Client money - Cash common funds) Instrument 2026/727, continues existing relief arrangements and will remain in force until 1 October 2031.
It replaces ASIC Corporations (Client money - Cash common funds) Instrument 2016/671, which is scheduled to expire on 1 October 2026.
Consultation feedback
ASIC consulted on its proposal to remake ASIC Instrument 2016/671 through CS 52 ASIC proposes to remake legislative instrument in relation to client money held in cash common funds and received one submission, which suggested stronger justification for the relief or additional conditions.
ASIC has not identified any adverse information arising from the use of the relief and therefore does not consider additional conditions necessary. Under the instrument, client money in cash common funds can only be invested in fixed-interest securities and negotiable instruments.