Document ID: chunk:federal_register_of_legislation:C2004A04777:section:5:p1
Version: federal_register_of_legislation:C2004A04777
Segment Type: section
Provision Reference: s 5 (pt 1/16)
Character Range: 47500–50590

5     person                       section 85A  Yes.
6.1   registrable Australian body  section 9    No. Financial institutions are not registrable Australian bodies because they are expressly excluded from the definition.
6.2   registrable local body       section 9    No. Financial institutions are not registrable local bodies because they are not registrable Australian bodies.
6.3   registrable body             section 9    No. Financial institutions are not registrable bodies because they are not:
                                                • registrable Australian bodies; or
                                                • foreign companies.

SCHEDULE 3—continued

Other expressions

"111AZG. The list of expressions in subsection 111AZF(1) is not exhaustive. If another expression is used in a provision (for example, 'entity'), the provision, and any relevant definitions, should be considered in determining whether the expression covers a financial institution.

Examples of how this Law applies to financial institutions

"111AZH. Some examples of how this Law applies to financial institutions are set out below.

EXAMPLE 1

A financial institution proposes to issue an invitation to subscribe for securities. Because the financial institution is a corporation for the purposes of Part 7.12, it must comply with Division 2 of Part 7.12 (except to the extent exempted under section 1083A). That Division covers the obligation to lodge and, in certain circumstances, register, a prospectus before issuing an invitation to subscribe for securities. Because the financial institution is also a corporation for the purposes of Part 7.11, criminal liability under section 996 or civil liability under section 1006 may (subject to the exemptions under section 1015A) follow if the institution issues a prospectus that includes a material statement that is false or misleading.

EXAMPLE 2

A director of a financial institution who is interested in a contract fails to declare the interest to the board. Because the financial institution is not a corporation for the purposes of Part 3.2, the director's conduct will not be regulated by section 232. However, the director's conduct as an officer of the financial institution may be taken into account under other provisions of Part 3.2, such as section 229. The question of whether the failure to declare the interest is an offence is dealt with in the relevant Financial Institutions Code.

EXAMPLE 3

A financial institution proposes to carry on an investment advice business. The financial institution is a person and so is prohibited by section 781 from carrying on the investment advice business unless the institution holds a licence granted under section 784, or is an exempt investment adviser as defined in section 68.

Division only explanatory

"111AZI. This Division is intended to explain the effect of other provisions of this Law. If a provision of this Division is inconsistent with a provision of this Law that is outside this Division, the provision outside this Division prevails.".

25. After section