Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.1 - PRELIMINARY  

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

SECTION 766A   WHEN DOES A PERSON PROVIDE A FINANCIAL SERVICE ?  

General

766A(1)  
For the purposes of this Chapter, subject to paragraph (2)(b), a person provides a financial service if they:

(a)  provide financial product advice (see section 766B ); or

(b)  deal in a financial product (see section 766C ); or

(c)  make a market for a financial product (see section 766D ); or

(d)  operate a registered scheme; or

(e)  provide a custodial or depository service (see section 766E ); or

(ea)  

provide a crowd-funding service (see section 766F ); or

(eb)  

provide a claims handling and settling service (see section 766G ); or

(ec)  

provide a superannuation trustee service (see section 766H ); 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).