Document ID: chunk:federal_register_of_legislation:C2025C00185:section:4:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 4 (pt 1/2)
Character Range: 2986449–2989091

4                                              margin lending facility  the person enters into the legal relationship that constitutes the margin lending facility, as the client under the facility

 (3A) For the avoidance of doubt, none of the following are taken to give rise to the issue of a financial product to a person (the client):
 (a) the client making a further contribution to a superannuation fund of which the client is already a member;
 (aa) an employer of the client making a further contribution, for the benefit of the client, to a superannuation fund of which the client is already a member;
 (b) the client making a further deposit into an RSA maintained in the client's name;
 (c) the client making a further payment under a life insurance investment product;
 (d) the client making a further deposit into a deposit product;
 (e) the client engaging in conduct specified in regulations made for the purposes of this paragraph in relation to a financial product already held by the client.

Issuer of a financial product
 (4) Subject to this section, the issuer, in relation to a financial product issued to a person (the client), is the person responsible for the obligations owed, under the terms of the facility that is the product:
 (a) to, or to a person nominated by, the client; or
 (b) if the product has been transferred from the client to another person and is now held by that person or another person to whom it has subsequently been transferred—to, or to a person nominated by, that person or that other person.
Note: For example, the issuer of a direct debit facility is the financial institution with which the account to be debited is held, rather than the persons to whom payments can be made using the facility.
 (4A) For the purposes of subsection (4), if the financial product issued to the client is an interest in a notified foreign passport fund, the operator of the fund is the person responsible for the obligations mentioned in that subsection that are owed under the terms of the facility that is the product.
 (5) Subject to subsection (7), each person who is a party to a financial product that:
 (a) is a derivative; and
 (b) is not entered into, or acquired, on a financial market;
is taken to be an issuer of the product.
Note 1: Under paragraph (1)(a), each person who is a party to the derivative will also acquire the financial product at the time of its issue as specified in subsection (3).
Note 2: Although each party to the derivative is an issuer, whether any particular party has disclosure or other obligations under this Chapter will depend on the circumstances (e.g. whether the