Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

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

PART 7.1 - PRELIMINARY  

Division 4 - Meaning of financial service and related terms  

SECTION 766A   MEANING OF FINANCIAL SERVICE  

General

766A(1)    

Subject to paragraph (2)(b) , a person provides a financial service if they:

(a)    

provide financial product advice; or

(b)    

deal in a financial product; or

(c)    

make a market for a financial product; or

(d)    operate a registered scheme; or

(da)    operate the business and conduct the affairs of a CCIV; or

(e)    

provide a custodial or depository service; or

(ea)    

provide a crowd-funding service; or

(eb)    

provide a claims handling and settling service; or

(ec)    

provide a superannuation trustee service; or

(f)    engage in conduct of a kind prescribed by regulations made for the purposes of this paragraph.

Provision of traditional trustee company services by trustee company

766A(1A)    

Subject to paragraph (2)(b) , the provision by a trustee company of a traditional trustee company service constitutes the provision, by the company, of a financial service .

Note: Trustee companies may also provide other kinds of financial service mentioned in subsection (1) .

766A(1B)    

The regulations may, in relation to a traditional trustee company service of a particular class, prescribe the person or persons to whom a service of that class is taken to be provided. This subsection does not limit (and is not limited by) subsection (2) .

Note: A traditional trustee company service is provided to a person as a retail client unless regulations provide otherwise (see subsection 761G(6A) ).

Regulations may deal with various matters

766A(2)    
The regulations may set out:

(a)    the circumstances in which persons facilitating the provision of a financial service (for example, by publishing information) are taken also to provide that service; or

(b)    the circumstances in which persons are taken to provide, or are taken not to provide, a financial service.

Exception for work ordinarily done by clerks or cashiers

766A(3)    
To avoid doubt, a person ' s conduct is not the provision of a financial service if it is done in the course of work of a kind ordinarily done by clerks or cashiers.

Meaning of operating a registered scheme

766A(4)    
For the purposes of this section, a person is not operating a registered scheme merely because:

(a)    they are acting as an agent or employee of another person; or

(b)    they are taking steps to wind up the scheme.

Overlap between financial services

766A(5)    

The fact that conduct constitutes the provision of a financial service is not to be taken to imply that the conduct does not also constitute the provision of another financial service.

Note: For example, conduct may constitute providing a superannuation trustee service and also providing another financial service (such as dealing in a financial product that is a superannuation product).