Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_12bab:p1
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 12BAB (pt 1/4)
Character Range: 833183–835965

12BAB  Meaning of financial service

When does a person provide a financial service?

 (1) For the purposes of this Division, subject to paragraph (2)(b), a person provides a financial service if they:
 (a) provide financial product advice (see subsection (5)); or
 (b) deal in a financial product (see subsection (7)); or
 (c) make a market for a financial product (see subsection (11)); or
 (d) operate a registered scheme; or
 (e) provide a custodial or depository service (see subsection (12)); or
 (f) operate a financial market (see subsection (15)) or clearing and settlement facility (see subsection (17)); or
 (g) provide a service that is otherwise supplied in relation to a financial product; or
 (h) engage in conduct of a kind prescribed in regulations made for the purposes of this paragraph.

 (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.

 (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.

Meaning of financial product advice

 (5) For the purposes of this section, financial product advice means a recommendation or a statement of opinion, or a report of either of those things, that:
 (a) is intended to influence a person or persons in making a decision in relation to a particular financial product or class of financial products, or an interest in a particular financial product or class of financial products; or
 (b) could reasonably be regarded as being intended to have such an influence;
but does not include anything in:
 (c) a document prepared in accordance with requirements of Chapter 7 of the Corporations Act, other than a document of a kind prescribed by regulations made for the purposes of this paragraph; or
 (d) any other document of a kind prescribed by regulations made for the purposes of this paragraph.

 (6) Advice given by a lawyer in his or her professional capacity about matters of law, legal interpretation or the application of the law to any facts is not financial product advice.

Meaning of dealing

 (7) For the purposes of this section, the following conduct constitutes dealing in a financial product:
 (a) applying for or acquiring a financial product;
 (b) issuing a financial product;
 (c) in relation to securities or managed investment interests—underwriting the securities or interests;
 (d) varying a financial product;
 (e) disposing of a financial product.

 (8) Arranging