ASIC has issued ASIC Corporations (Non-cash Payment Facilities) Instrument 2026/167 that provides exemptions for low-risk non-cash payment facilities from different aspects of the financial services licensing regime in the Corporations Act.
ASIC will review the exemptions from licensing, conduct, and disclosure obligations for certain non-cash payment facilities when the payments licensing reforms take effect.
The Corporations Act provides that a facility through which, or through the acquisition of which, a person makes payments otherwise than through the delivery of notes or coins (a non-cash payment facility) is a financial product.
These products are subject to the financial services regulatory regime, which requires persons to hold an Australian financial services (AFS) licence in order to provide financial services in relation to a financial product.
The instrument remakes relief for the following non-cash payment products, which satisfy prescribed conditions:
- loyalty schemes and road toll facilities, which are not financial products;
- prepaid mobile facilities and some gift facilities;
- low value non-cash payments products; and
- travellers’ cheques.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
