The HSF Financial Services Regulatory team is pleased to have advised the Australian Financial Markets Association (AFMA) in obtaining welcome relief from ASIC in relation to the unfair contracts terms regime under the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act), which was recently expanded with effect from 9 November 2023.
ASIC has adopted a no-action position as set out in its No-Action Letter. The No-Action Letter provides welcome certainty that ASIC does not intend to take regulatory action in connection with the unfair contract terms regime for a standard form contract that is:
- made with Institutional Investors; or
- an Industry Standard Form Contract.
The no-action position commenced on 2 February 2024.
The No-Action Letter strikes a pragmatic and sensible balance between the policy intent of protecting consumers and small businesses under the unfair contract terms regime with the need for regulatory certainty in connection with the provision of institutional financial services.
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