Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

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Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

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History

Ch 7 amended by No 8 of 2022, s 3, Sch 2[165] (effective 1 July 2022).

Ch 7 inserted by No 122 of 2001, s 3, Sch 1, Pt 1 [ 1].

As Act No 122 of 2001 repealed Ch 7 and 8 the history notes for Ch 7 use " inserted " and references to the former provisions have been removed.

PART 7.1 - PRELIMINARY  

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Division 3 - Meaning of financial product and related terms  

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History

Div 3 heading substituted by No 69 of 2023, s 3, Sch 2[40] (effective 15 September 2023).

Subdivision B - The general definition  

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SECTION 763C  

763C   MEANING OF MANAGES FINANCIAL RISK  

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A person manages financial risk if they:

(a)    manage the financial consequences to them of particular circumstances happening; or

(b)    avoid or limit the financial consequences of fluctuations in, or in the value of, receipts or costs (including prices and interest rates).

Note 1: Examples of actions that constitute managing a financial risk are:

(a) taking out insurance; or

(b) hedging a liability by acquiring a futures contract or entering into a currency swap.

Note 2: An example of an action that does not constitute managing a financial risk is employing a security firm (while that is a way of managing the risk that thefts will happen, it is not a way of managing the financial consequences if thefts do occur).

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History

S 763C amended by No 76 of 2023, s 3, Sch 2[325] (effective 20 October 2023).

S 763C inserted by No 122 of 2001, s 3, Sch 1, Pt 1 [ 1].

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