ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795

I, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date 12 September 2017

Contents

Part 1—Preliminary

1 Name of legislative instrument

2 Commencement

3 Authority

4 Definitions

Part 2—Exemption

5 Licensing exemption for mortgage offset account services

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (Mortgage Offset Accounts) Instrument 2017/795.

2 Commencement

This instrument commences at the same time as the commencement of the ASIC Corporations (Repeal) Instrument 2017/796.

3 Authority

This instrument is made under paragraph 926A(2)(a) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

mortgage offset account means a deposit product that is a facility in relation to which either of the following applies:

(a) the amount standing to the credit of the facility from time to time is notionally offset against the balance of a loan entered into by the depositor with the provider of the facility, and interest on the loan is calculated by reference to the notionally-reduced loan balance;

(b) interest payable on a loan entered into by the depositor with the provider of the facility is periodically reduced by an amount that would otherwise accrue as interest or other earnings on the amount standing to the credit of the facility from time to time.

Part 2—Exemption

5 Licensing exemption for mortgage offset account services

A person who provides financial services does not have to comply with subsection 911A(1) of the Act for the provision of any of the following financial services:

(a) financial product advice relating to a mortgage offset account;

(b) arranging for another person to apply for, acquire, vary or dispose of a mortgage offset account.

Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115 provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption under section 926A of the Act.