Commonwealth Consolidated Acts

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When does a person provide a financial service?


             (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

                   (da)  operate the business and conduct the affairs of a CCIV; 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

          (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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