The Australian Securities & Investments Commission has launched a consultation on remaking a legislative instrument that allows Australian Financial Services licensees to deposit clients’ money into a cash common fund. The current instrument is due to expire on 1 October 2026, and ASIC proposes to remake it on unchanged terms after assessing that it is operating effectively and remains a necessary and useful part of the legislative framework. Instrument 2016/671 allows client money received by an AFS licensee to be deposited into a cash common fund where that fund is also a registered scheme. ASIC says the instrument gives licensees flexibility in dealing with client money while preserving the consumer protections in section 981B of the Corporations Act 2001, and it continues relief previously provided under ASIC Class Order CO 04/1063. Submissions on the proposal are due by 5 pm AEST on Tuesday 19 May 2026.
Australian Securities & Investments Commission 2026-05-05
Australian Securities & Investments Commission consults on remaking client money relief for cash common funds without substantive change
The Australian Securities & Investments Commission has launched a consultation on remaking legislative instrument 2016/671, which permits Australian Financial Services licensees to deposit client money into a cash common fund that is also a registered scheme. ASIC proposes to remake the instrument unchanged, having assessed that it operates effectively, remains necessary, and continues to provide flexibility while preserving consumer protections under section 981B of the Corporations Act 2001.