The instrument provides exemptions and regulatory relief for prepaid mobile facilities and non-reloadable gift facilities, which are core prepaid payment products.
The instrument also exempts loyalty schemes and road toll facilities from financial services licensing, which involve stored-value payment mechanisms similar to loyalty payment schemes.
Specialism
The instrument provides exemptions from licensing, conduct, and disclosure obligations for various low-risk non-cash payment facilities, which relates to the regulatory framework governing payment service providers.
Low confidence — requires human review. The exemptions from conduct and disclosure obligations touch on customer protection principles, but the primary focus is supervisory relief rather than direct customer protection rules.
2026-04-07 15:11:19·kgurnani@vixio.com
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3030197
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Fair, strong and efficient financial system for all Australians.
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TITLE: Australia's Financial Services Regulator Remakes Non-Cash Payment Facilities Exemption Instrument
BODY:
On February 2026, the Australian Securities and Investments Commission (ASIC) remade ASIC Corporations (Non-Cash Payment Facilities) Instrument 2026/167, extending relief previously provided under ASIC Corporations (Non-Cash Payment Facilities) Instrument 2016/211. The new instrument extends exemptions for low-risk non-cash payment facilities from aspects of the financial services licensing regime under the Corporations Act 2001 until April 2031.
ASIC assessed that the previous instrument was operating effectively and efficiently and determined it remained a necessary and useful part of the legislative framework. The remake includes technical updates but does not alter the operation of the relief. The instrument provides exemptions for travellers' cheques, which are exempt from transaction confirmation requirements; loyalty schemes and road toll facilities, which are not subject to financial services laws; prepaid mobile facilities and some non-reloadable gift facilities, which are exempt from licensing, conduct, and disclosure obligations; and low-value non-cash payment products, which are also exempt from licensing, conduct, and disclosure obligations. Additionally, relief is provided so that Australian Financial Services (AFS) licensees who provide advice about or arrange payment services do not require additional authorisation on their AFS licence.
ASIC invited feedback on the remake proposal in October 2025. The instrument will be revisited once the government's payments licensing reforms, designed to modernise the regulatory framework for payment service providers, take effect. The remake ensures continued regulatory relief for these low-risk payment facilities during the transition period.