Corporations Amendment Regulations 2002 (No. 3) (41 of 2002)

Schedule 1   Amendments commencing at 12.02 am (in the Australian Capital Territory) on 11 March 2002

[27]   After paragraph 7.6.01 (1) (j)

insert

(k) a financial service provided in the following circumstances:

(i) the financial service is provided in respect of a financial product by a person (who may be described as a 'sub-custodian') under an arrangement with a financial services licensee (the master-custodian );

(ii) the master-custodian is authorised by its Australian financial services licence to provide a custodial or depository service;

(iii) a beneficial interest in the financial product is held by the master-custodian on trust for or on behalf of a client as part of providing a custodial or depository service authorised by its Australian financial services licence;

(l) a financial service provided by a person ( person 1 ) in the following circumstances:

(i) the financial service is provided to another person ( person 2 ) in the ordinary course of person 1's business;

(ii) person 1 does not provide financial services as a significant part of person 1's business;

(iii) the financial service consists only of either or both of:

(A) advising person 2 in relation to a non-cash payments facility that person 2 may use or has used to pay person 1 for goods or services; and

(B) arranging to deal in a non-cash payments facility that person 2 will use to pay person 1 for goods or services;

(iv) the goods and services do not include any financial products or financial services;

Example

A retailer might offer its customers a variety of payment methods for payment for goods and services, such as a credit card, Bpay, or direct debit.

A recommendation of a particular payment method, or the expression of an opinion about the payment methods available to the customer, should not require an Australian financial services licence.

(m) a financial service provided by a person in the following circumstances:

(i) the service consists only of either or both of:

(A) dealing in derivatives; and

(B) dealing in foreign exchange contracts;

(ii) the service does not involve the making of a market for derivatives or foreign exchange contracts;

(iii) the dealing is entered into for the purpose of managing a financial risk that arises in the ordinary course of a business;

(iv) the person does not deal in derivatives or foreign exchange contracts as a significant part of the person's business;

(v) the dealing is entered into on the person's own behalf;

Example of financial service to which paragraph (m) applies

A series of forward foreign exchange contracts entered into by a gold mining company to hedge against the risk of a fall in the price of gold.

Example of financial service to which paragraph (m) does not apply

The issue and disposal of derivatives relating to the wholesale price of electricity are not transactions to which this paragraph applies.

(n) a financial service provided by a person ( person 1 ) to another person ( person 2 ) in the following circumstances:

(i) person 1 is not in this jurisdiction;

(ii) person 2 is in this jurisdiction;

(iii) the service consists only of dealing in a financial product or class of financial products;

(iv) a financial services licensee whose financial services licence covers the provision of the service arranges for person 1 to provide the service to person 2;

(o) a financial service that is the provision of financial product advice in the following circumstances:

(i) the advice is only general advice in relation to a financial product or class of financial products;

(ii) the advice is provided by the product issuer of the financial product or class of financial products;

(iii) the advice is provided in the media;

(iv) the product issuer provides the following information:

(A) the advice has been prepared without taking account of the client's objectives, financial situation or needs;

(B) for that reason, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client's objectives, financial situation and needs;

(C) if the advice relates to the acquisition, or possible acquisition, of a particular financial product, the client should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product;

(p) a financial service provided by a person in the following circumstances:

(i) the financial service relates to insurance entered into, or proposed to be entered into, for the purposes of a law (including a law of a State or Territory) that relates to workers compensation;

(ii) the person is licensed to provide the service under the law of the State or Territory in which the service is provided;

Example

The activities of a licensed insurer under the Workers Compensation Act 1987 of New South Wales.

Note A licensed insurer would require an Australian financial services licence to the extent that the licensed insurer provides a financial service in respect of a non-workers compensation product or a non-workers compensation component of a product.

(q) a financial service provided by a person in the following circumstances:

(i) the financial service consists only of the variation or disposal of a financial product by the person;

(ii) the person also issued the original product;

(iii) the person provides the financial service under the terms of the financial product;

(r) a financial service that is a dealing (or arranging for a dealing) in:

(i) a debenture; or

(ii) a legal or equitable right or interest in a debenture; or

(iii) an option to acquire, by way of issue or transfer, a debenture or a legal or equitable right or interest in a debenture;

by the issuer of the debenture, the legal or equitable right or interest or the option.