Commonwealth Consolidated Acts

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Meaning of financial service


  (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

  (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).

  (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

  (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

  (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

  (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

  (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).

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