Document ID: chunk:federal_register_of_legislation:C2025C00182:section:12bab:p3
Version: federal_register_of_legislation:C2025C00182
Segment Type: section
Provision Reference: s 12BAB (pt 3/5)
Character Range: 77782–80442

providing financial product advice.
 (9) A person is taken not to deal in a financial product if the person deals in the product on their own behalf, unless:
 (a) the person is an issuer of financial products; and
 (b) the dealing is in relation to one or more of those products.
 (10) The regulations may prescribe conduct that is taken to be, or not to be, dealing in a financial product. Regulations made for the purposes of this subsection have effect despite anything else in this section.

Meaning of makes a market for a financial product
 (11) For the purposes of this section, a person makes a market for a financial product if:
 (a) either through a facility, at a place or otherwise, the person regularly states the prices at which they propose to acquire or dispose of financial products on their own behalf; and
 (b) other persons have a reasonable expectation that they will be able to regularly effect transactions at the stated prices; and
 (c) the actions of the person do not, or would not if they happened through a facility or at a place, constitute operating a financial market because of the effect of paragraph (16)(a).

Meaning of provide a custodial or depository service
 (12) For the purposes of this section, a person (the provider) provides a custodial or depository service to another person (the client) if, under an arrangement between the provider and the client, or between the provider and another person with whom the client has an arrangement, (whether or not there are also other parties to any such arrangement), a financial product, or a beneficial interest in a financial product, is held by the provider in trust for, or on behalf of, the client or another person nominated by the client.
 (14) However, the following conduct does not constitute providing a custodial or depository service:
 (a) the operation of a clearing and settlement facility;
 (b) the operation of a registered scheme, or the holding of the assets of a registered scheme;
 (ba) the operation of a notified foreign passport fund;
 (bb) the holding of the assets of a notified foreign passport fund;
 (c) the operation of:
 (i) a regulated superannuation fund; or
 (ii) an AFCA regulated superannuation scheme; or
 (iii) an approved deposit fund; or
 (iv) a pooled superannuation trust;
 (d) the provision of services to a related body corporate;
 (da) operating as a CCIV;
 (db) operating the business and conducting the affairs of a CCIV;
 (dc) holding the money or property of a CCIV;
 (e) any other conduct of a kind prescribed by regulations made for the purposes of this paragraph.
Note: Holding the assets of a sub‑fund of a CCIV is covered