CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.1 - PRELIMINARY  

Division 3 - What is a financial product?  

Subdivision C - Specific inclusions  

SECTION 764A   SPECIFIC THINGS THAT ARE FINANCIAL PRODUCTS (SUBJECT TO SUBDIVISION D)  

764A(1)  
Subject to Subdivision D , the following are financial products for the purposes of this Chapter:


(a) a security;


(b) any of the following in relation to a registered scheme:


(i) an interest in the scheme;

(ii) a legal or equitable right or interest in an interest covered by subparagraph (i);

(iii) an option to acquire, by way of issue, an interest or right covered by subparagraph (i) or (ii);


(ba) any of the following in relation to a managed investment scheme that is not a registered scheme, other than a scheme (whether or not operated in this jurisdiction) in relation to which none of paragraphs 601ED(1)(a) , (b) and (c) are satisfied:


(i) an interest in the scheme;

(ii) a legal or equitable right or interest in an interest covered by subparagraph (i);

(iii) an option to acquire, by way of issue, an interest or right covered by subparagraph (i) or (ii);


(bb) any of the following in relation to a notified foreign passport fund:


(i) an interest in the fund;

(ii) a legal or equitable right or interest in an interest covered by subparagraph (i);

(iii) an option to acquire, by way of issue, an interest or right covered by subparagraph (i) or (ii);


(c) a derivative;


(d) a contract of insurance that is not a life policy, or a sinking fund policy, within the meaning of the Life Insurance Act 1995 , but not including such a contract of insurance:


(i) to the extent that it provides for a benefit to be provided by an association of employees that is registered as an organisation, or recognised, under the Fair Work (Registered Organisations) Act 2009 for a member of the association or a dependant of a member; or

(ii) to the extent that it provides for benefits, pensions or payments described in paragraph 11(3)(c) of the Life Insurance Act 1995 ; or

(iii) to the extent that it provides for the provision of a funeral benefit; or

(iv) issued by an employer to an employee of the employer;


(e) a life policy, or a sinking fund policy, within the meaning of the Life Insurance Act 1995 , that is a contract of insurance, but not including such a policy:


(i) to the extent that it provides for a benefit to be provided by an association of employees that is registered as an organisation, or recognised, under the Fair Work (Registered Organisations) Act 2009 for a member of the association or a dependant of a member; or

(ii) to the extent that it provides for benefits, pensions or payments described in paragraph 11(3)(c) of the Life Insurance Act 1995 ; or

(iii) to the extent that it provides for the provision of a funeral benefit; or

(iv) issued by an employer to an employee of the employer;


(f) a life policy, or a sinking fund policy, within the meaning of the Life Insurance Act 1995 , that is not a contract of insurance, but not including such a policy:


(i) to the extent that it provides for a benefit to be provided by an association of employees that is registered as an organisation, or recognised, under the Fair Work (Registered Organisations) Act 2009 for a member of the association or a dependant of a member; or

(ii) to the extent that it provides for benefits, pensions or payments described in paragraph 11(3)(c) of the Life Insurance Act 1995 ; or

(iii) to the extent that it provides for the provision of a funeral benefit; or

(iv) issued by an employer to an employee of the employer;


(g) a superannuation interest within the meaning of the Superannuation Industry (Supervision) Act 1993 ;


(h) an RSA (retirement savings account) within the meaning of the Retirement Savings Accounts Act 1997 ;


(ha) (Repealed)


(i) any deposit-taking facility made available by an ADI (within the meaning of the Banking Act 1959 ) in the course of its banking business (within the meaning of that Act), other than an RSA (RSAs are covered by paragraph (h));


(j) a debenture, stock or bond issued or proposed to be issued by a government;


(k) a foreign exchange contract that is not:


(i) a derivative (derivatives are covered by paragraph (c)); or

(ii) a contract to exchange one currency (whether Australian or not) for another that is to be settled immediately;


(kaa) (Repealed)


(ka) an Australian carbon credit unit;


(kb) an eligible international emissions unit;


(l) a margin lending facility;


(m) anything declared by the regulations to be a financial product for the purposes of this Chapter.

Note: Even though something is expressly excluded from one of these paragraphs, it may still be a financial product (subject to Subdivision D ) either because:

  • (a) it is covered by another of these paragraphs; or
  • (b) it is covered by the general definition in Subdivision B .
  • Contracts of insurance

    764A(1A)  


    If a single contract of insurance provides 2 or more kinds of cover, paragraph (1)(d) applies separately in relation to that contract, in relation to each of those kinds of cover, as if the contract only provided that kind of cover.

    Note: Because of this subsection (including as it is affected by subsection (1B)), a single contract of insurance may constitute 2 or more separate general insurance products.

    764A(1B)  


    If a contract of insurance provides a kind of cover in relation to 2 or more kinds of asset, subsection (1A) applies to the contract, in relation to each of those kinds of asset, as if the cover provided by the contract in relation to that kind of asset constituted a separate kind of cover.

    764A(2)  


    For the purpose of paragraphs (1)(d), (e) and (f) and subsections (1A) and (1B), contract of insurance includes:


    (a) a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and


    (b) a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance.

    Declaring additional things to be financial products for specified provisions of this Chapter

    764A(3)  


    Subject to Subdivision D, a thing declared by regulations to be a financial product for a specified provision of this Chapter is a financial product for that provision.

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