Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.1 - PRELIMINARY  

Division 4 - Dealings in financial products  

REGULATION 7.1.35   CONDUCT THAT DOES NOT CONSTITUTE DEALING IN A FINANCIAL PRODUCT  

7.1.35(1)   [ Not dealing in a financial product]  

For subsection 766C(7) of the Act, conduct is not taken to be dealing in a financial product if:

(a) the conduct is of a kind:

(i) mentioned in paragraph 766C(1) (a), (d) or (e) of the Act; or

(ii) mentioned in paragraph 766C(1) (b) of the Act, where it is the issue of a beneficial interest in a financial product, that arises from conduct that would constitute providing a custodial or depository service but for the operation of regulation 7.1.40 ; and

(b) the conduct is carried out by a person ( person 1 ) in relation to a product that person 1 holds on trust for, or on behalf of, another person ( person 2 ) and the holding of that financial product would not constitute the provision of a custodial or depository service because of paragraphs 7.1.40 (a), (b), (c), (d), (g) and (i).

7.1.35(2)   [ Exemption]  

Subregulation (1) does not apply to conduct carried out by person 1 in relation to a financial product that is held under a custodial arrangement as defined in section 1012IA of the Act unless:

(a) person 2 is an associate of person 1; or

(b) the financial product is held in the manner mentioned in paragraph 7.1.40 (d).