Released 5 May 2026. Comments close 19 May 2026.
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.
The proposed legislative instrument to be remade is ASIC Corporations (Client money - Cash common funds) Instrument 2016/671 due to sunset on 1 October 2026.
We have assessed the instrument and determined that it is operating effectively and efficiently. Consequently, it continues to form a necessary and useful part of the legislative framework.
Under the proposal, the effect of the instrument will remain unchanged.
A consultation paper was not issued for this consultation.
Providing feedback
We invite feedback on this proposal from industry and interested stakeholders. Submissions should be sent to rri.consultation@asic.gov.au by 5 pm AEST on Tuesday 19 May 2026.
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Background
Under the Legislation Act 2003, legislative instruments are repealed, or ‘sunset’, after 10 years, unless ASIC acts to preserve them.
ASIC Instrument 2016/671 enables client money received by an AFS licensee to be deposited into a cash common fund, provided the fund is also a registered scheme.
It is intended to provide flexibility to licensees in dealing with client money while retaining the consumer protections provided by section 981B of the Corporations Act 2001.
This instrument extended the relief that was originally provided in ASIC Class Order [CO 04/1063] IR 04-47 ASIC provides relief for client money held in cash common funds.