ASIC Extends Market Relief for Exchange-Traded Derivatives and Securities for Five Years

Key Takeaways

• ASIC has remade three legislative instruments and extended a fourth for five years, preserving existing relief for exchange-traded derivatives disclosure, trans-Tasman securities settlement, foreign securities transfers, and securities lending.
• The relief itself is unchanged, but the instruments have new numbers and some wording and reference updates.
• Compliance teams should confirm that policies and legal references cite the correct instruments.

Deep Dive

ASIC has remade three legislative instruments and extended a fourth for five years, preserving existing relief for exchange-traded derivatives disclosure, trans-Tasman securities settlement, foreign securities transfers, and securities lending. The relief itself is unchanged, but the instruments have new numbers and some wording and reference updates. Compliance teams should confirm that policies and legal references cite the correct instruments.

The update means the existing relief continues without interruption. Four instruments were due to sunset or expire in September and October 2026. Following consultation under CS 56, which drew two submissions, ASIC remade three of them and extended the fourth. Each instrument will run for five years. For most firms, the operational impact should be minimal, but the replacement of instrument numbers creates a documentation and reference-control task.

The key points by instrument are as follows. Instrument 2026/682 replaces 2016/883 and continues modified Product Disclosure Statement (PDS) requirements under Part 7.9 of the Corporations Act 2001. Where an intermediary and a market participant are both treated as issuers, only the market participant must provide a PDS, and the intermediary's disclosure obligations are modified. ASIC clarified the relief requirements. Instrument 2026/683 replaces 2016/891 (NZ FASTER System) and supports legal recognition in Australia of securities transferred through New Zealand's NZCDC Legal Title Transfer system under Part 7.11. It updates system and market references to reflect NZX's current operations. Instrument 2026/684 replaces 2016/893 and applies Division 3 of Part 7.11, and regulations made for section 1073D, to shares or debentures of foreign companies quoted on a declared financial market, so they can be transferred with statutory warranties and indemnities. It now uses market-neutral language and simpler definitions. Instrument 2021/821 on securities lending, which provides relief from the Chapter 6C substantial holding requirements, is extended through Amendment Instrument 2026/685 rather than remade. It continues relief originally provided by Class Order [11/272].

Timing matters because the earlier instruments were due to sunset in September and October 2026. Firms should confirm that the new instruments are in force before the old ones lapse and that no gap in reliance exists. Note that the source text refers to the securities lending amendment as both 2026/685 and 2026-685, and the PDS and NZ instrument titles differ slightly from the original names. Teams should verify exact citations against the Federal Register of Legislation.

Recommended actions: (1) inventory where the business relies on each instrument, including PDS processes, NZ cross-border settlement, foreign securities transfers, and securities lending programs; (2) update policies, procedures, legal opinions, client documentation, and control libraries with the new instrument numbers; (3) confirm that conditions have not changed in practice, particularly where the clarified or simplified wording could affect interpretation; (4) check that securities lending and substantial holding monitoring continues to reference the amended instrument; and (5) set a calendar reminder for review ahead of the five-year expiry.

Risk impact is low to moderate. The main exposure is operational and legal: relying on superseded instruments or mis-citing them could create technical noncompliance with PDS, transfer, or substantial holding obligations. Because the relief is unchanged, no new substantive obligations or costs are expected, and the five-year term gives planning certainty.

Source: Australian Securities and Investments Commission