The Australian Securities & Investments Commission has published Information Sheet 295 for operators of employee entitlement schemes, outlining its approach to regulating these schemes under the Corporations Act 2001 from 1 April 2026, including the shift to Australian financial services (AFS) licensing. The information sheet covers transitional relief available from 1 April 2026 until ASIC grants an AFS licence, the process for operators to apply for an AFS licence with the relevant authorisations by 1 September 2026, and the ongoing obligations that will apply under the Corporations Act and under conditions attached to ASIC relief. Employee entitlement schemes are described as vehicles to fund benefits payable to employees on termination of employment or to meet long-service leave entitlements, and current relief under ASIC Corporations (Employee redundancy funds relief) Instrument 2015/1150 runs until 1 April 2026. ASIC expects to make a new legislative instrument in March 2026 providing transitional and ongoing relief from certain Corporations Act provisions, and will undertake targeted consultation with operators of existing schemes before finalising the instrument.
Australian Securities & Investments Commission 2026-02-19
Australian Securities & Investments Commission issues employee entitlement scheme guidance on AFS licensing and transitional relief
The Australian Securities & Investments Commission (ASIC) has released Information Sheet 295 detailing its regulatory approach for employee entitlement schemes under the Corporations Act 2001, effective 1 April 2026, including a transition to Australian financial services (AFS) licensing. The sheet outlines transitional relief, the AFS licence application process, and ongoing obligations. ASIC plans to introduce a new legislative instrument in March 2026, providing further relief and will consult with scheme operators before finalization.