Document ID: chunk:federal_register_of_legislation:C2025C00113:section:5
Version: federal_register_of_legislation:C2025C00113
Segment Type: section
Provision Reference: s 5
Character Range: 6302–8662

5  Entities covered by the Act
 (1) This Act deals with financial sector entities.
 (2) A financial sector entity is:
 (a) a registered entity; or
 (b) a regulated entity; or
 (c) a corporation to which section 5A applies; or
 (d) a discretionary mutual fund; or
 (e) a person who:
 (i) provides a financial service (within the meaning of the Corporations Act 2001); and
 (ii) is not an entity, corporation or fund referred to in paragraphs (a) to (d) of this subsection; or
 (f) a person who:
 (i) is a participant in a payment system (within the meaning of section 7 of the Payment Systems (Regulation) Act 1998); and
 (ii) is not an entity, corporation or fund referred to in paragraphs (a) to (d) of this subsection.
 (3) A registered entity is a corporation whose name is entered in the Register of Entities kept by APRA under section 8.
 (4) A regulated entity is any of the following:
 (a) a body regulated by APRA (within the meaning of subsection 3(2) of the Australian Prudential Regulation Authority Act 1998);
 (c) a subsidiary of an ADI, or a subsidiary of an authorised NOHC, within the meaning of the Banking Act 1959.
 (5) A discretionary mutual fund is a fund (however constituted) for making payments on the happening of a specified event (where there is uncertainty as to whether, or when, the event will happen), that is a fund:
 (a) to which 2 or more persons contribute, and:
 (i) out of which payments may be made in respect of liabilities, losses, damages or expenses of the contributors; and
 (ii) that is governed by rules under which any such payment for the benefit of a contributor is subject to a discretion of a person or body; or
 (b) that is declared to be a discretionary mutual fund, or included in a class of funds that are declared to be discretionary mutual funds, by regulations made for the purposes of this paragraph.
 (6) However, a fund (however constituted) is not a discretionary mutual fund if:
 (a) a contributor has a right, in law or equity, to a payment of a kind referred to in subparagraph (5)(a)(i); or
 (b) the fund is:
 (i) declared not to be a discretionary mutual fund; or
 (ii) included in a class of funds that are declared not to be discretionary mutual funds;
  by regulations made for the purposes of this paragraph.
 (7) Despite subsection (2), the Reserve Bank is not a financial sector entity.