Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p83
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 83/148)
Character Range: 539486–542110

may be (whether the regime is provided for by law or otherwise).

Division 4—Dealings in financial products

7.1.34  Conduct that does not constitute dealing in a financial product
 (1) This regulation does not apply in relation to a margin lending facility.
 (2) For subsection 766C(7) of the Act, the following conduct does not constitute dealing in a financial product:
 (a) the enforcement of rights under a credit facility, including the enforcement of rights by a person acting under a power of attorney;
 (b) the disposal of a financial product that is subject to a mortgage or the transfer of such a product to the mortgagor, whether the disposal or transfer is carried out at the direction of the mortgagor or occurs as a result of the mortgagor fulfilling its obligations under the mortgage.
Example for paragraph (a): A mortgagee exercising a power of sale under a mortgage.

7.1.35  Conduct that does not constitute dealing in a financial product
 (1) For subsection 766C(7) of the Act, conduct is not taken to be dealing in a financial product if:
 (a) the conduct is of a kind:
 (i) mentioned in paragraph 766C(1)(a), (d) or (e) of the Act; or
 (ii) mentioned in paragraph 766C(1)(b) of the Act, where it is the issue of a beneficial interest in a financial product, that arises from conduct that would constitute providing a custodial or depository service but for the operation of regulation 7.1.40; and
 (b) the conduct is carried out by a person (person 1) in relation to a product that person 1 holds on trust for, or on behalf of, another person (person 2) and the holding of that financial product would not constitute the provision of a custodial or depository service because of paragraphs 7.1.40(a), (b), (c), (d), (g) and (i).
 (2) Subregulation (1) does not apply to conduct carried out by person 1 in relation to a financial product that is held under a custodial arrangement as defined in section 1012IA of the Act unless:
 (a) person 2 is an associate of person 1; or
 (b) the financial product is held in the manner mentioned in paragraph 7.1.40(d).

7.1.35A  Conduct that does not constitute dealing in a financial product—lawyers acting on instructions
  For subsection 766C(7) of the Act, a financial service provided by a lawyer is taken not to be dealing in a financial product if:
 (a) the financial service consists of:
 (i) arranging for a person to engage in conduct referred to in subsection 766C(1) of the Act; or
 (ii) dealing as an agent or otherwise on behalf of a client, an associate of a client or a relative of a client; and
 (b) the lawyer is acting:
 (i) on the instructions