A time-sharing scheme is a form of ownership or right to use a property, usually holiday accommodation. Time-sharing schemes are considered a financial product because they are a managed investment scheme.
ASIC regulates financial services, which includes managed investment schemes and financial advice.
The information on this page will assist:
- operators and promoters of time-sharing schemes
- advisers who may recommend time-sharing schemes to potential clients
- credit providers and credit assistance providers who may assist in the purchasing of an interest in a time-sharing scheme by providing finance to purchase the interest, and
- investors interested in the latest information about time-sharing schemes.
ASIC’s Moneysmart website has more information on time-sharing schemes for consumers.
ASIC’s guidance on time-sharing schemes
Regulatory Guide 160 Time-sharing schemes (RG 160) provides guidance to time-sharing scheme operators and promoters, and those who provide credit and credit assistance to purchasers. It explains ASIC’s approach to regulating time-sharing schemes under the Corporations Act 2001.
In 2020, ASIC updated RG 160 to provide guidance on a combination of new and amended obligations and requirements imposed under conditional technical relief provided under ASIC Corporations (Time-sharing Schemes) Instrument 2017/272, ASIC Corporations (Amendment) Instrument 2020/1064 and ASIC Corporations (Amendment) Instrument 2020/1065.
RG 160 also includes guidance on existing obligations for industry to help time-share advisers improve the quality of financial advice they provide to consumers and to reduce the harms associated with its selling practices identified in Report 642 Timeshare: Consumers’ experiences (REP 642).
Consumers’ experiences with time-sharing schemes
In 2019, ASIC commissioned research on consumer experiences with time-sharing schemes and released the findings in REP 642.
The research found that while some research participants were satisfied with their time-share membership, there was a high level of discontent overall. Many research participants felt that they were not getting the expected value from their membership because of unexpected changes to membership fees or their personal circumstances, with some experiencing financial difficulties in meeting their ongoing commitments.
Further guidance and information on time-sharing schemes
Guidance for financial advisers who provide advice on time-sharing schemes:
- Regulatory Guide 36 Licensing: Financial product advice and dealing
- Regulatory Guide 175 Licensing: Financial product advisers — Conduct and disclosure
- Regulatory Guide 244 Giving information, general advice and scaled advice
Information about appointing a time-share adviser:
Past consultation papers: