Corporations Act 2001


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


Division 4 - When does a person provide a financial service?  


For the purposes of this Chapter, the following conduct (whether engaged in as principal or agent) constitutes dealing in a financial product:

(a)  applying for or acquiring a financial product;

(b)  issuing a financial product;


in relation to securities and interests in managed investment schemes - underwriting the securities or interests;

(d)  varying a financial product;

(e)  disposing of a financial product.

Arranging for a person to engage in conduct referred to in subsection (1) is also dealing in a financial product, unless the actions concerned amount to providing financial product advice.


Despite subsections (1) and (2) , providing a crowd-funding service does not constitute dealing in a financial product.

A person is taken not to deal in a financial product if the person deals in the product on their own behalf (whether directly or through an agent or other representative), unless:

(a)  the person is an issuer of financial products; and

(b)  the dealing is in relation to one or more of those products.

For the purposes of subsection (3) , a person (the agent ) who deals in a product as an agent or representative of another person (the principal ) is not taken to deal in the product on the agent ' s own behalf, even if that dealing, when considered as a dealing by the principal, is a dealing by the principal on the principal ' s own behalf.

Also, a transaction entered into by a person who is, or who encompasses or constitutes in whole or in part, any of the following entities:

(a)  a government or local government authority;

(b)  a public authority or instrumentality or agency of the Crown;


a body corporate (other than a CCIV) or an unincorporated body;

(ca)  a CCIV;

is taken not to be dealing in a financial product by that person if the transaction relates only to:

(d)  securities of that entity; or

(e)  if the entity is a government - debentures, stocks or bonds issued or proposed to be issued by that government.

Paragraph (4)(c) does not apply if the entity:

(a)  carries on a business of investment in securities, interests in land or other investments; and

(b)  in the course of carrying on that business, invests funds subscribed, whether directly or indirectly, after an offer or invitation to the public (within the meaning of section 82 ) made on terms that the funds subscribed would be invested.

A transaction entered into by a sub-underwriter of an issue of securities that relates only to the sub-underwriting is taken not to be dealing in a financial product.


The regulations may prescribe conduct that is taken to be, or not to be, dealing in a financial product. Regulations made for the purposes of this subsection have effect despite anything else in this section.

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