Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p50
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 50/148)
Character Range: 457925–460682

product.
 (3) For paragraph 766A(2)(b) of the Act, and in relation to the financial product:
 (a) the provision of financial product advice to the debtor, or the debtor's representative, is taken not to be the provision of a financial service; and
 (b) a dealing in the credit facility by the credit provider, or the credit provider's representative, is taken not to be the provision of a financial service.
 (4) In this regulation:
credit, credit provider and debtor have the same meanings as in subregulation 7.1.06(3).

7.1.07  Specific things that are not financial products: surety bonds
 (1) This regulation applies to an arrangement between 2 persons (person 1 and person 2) made in the following circumstances:
 (a) person 1 enters into the arrangement in order to meet a requirement of another arrangement between person 1 and a person other than person 2 (person 3);
 (b) under the arrangement, person 2 undertakes to make a payment to, or perform an obligation for the benefit of, person 3 in circumstances specified as part of the arrangement;
 (c) under the arrangement, person 1 is liable to person 2 for any payments made, or liabilities, costs or expenses incurred, by person 2 in making the payment to, or performing the obligation for the benefit of, person 3;
 (d) the arrangement does not constitute a financial product under section 764A of the Act, other than a derivative.
 (2) For paragraph 765A(1)(y) of the Act, the arrangement is not a financial product.

7.1.07A  Specific things that are not financial products: rental agreements
 (1) This regulation applies to an arrangement between 2 persons (person 1 and person 2) made in the following circumstances:
 (a) person 1 leases or rents something from person 2;
 (b) under the arrangement, person 1 makes a payment to person 2 to reduce the amount that person 1 would otherwise have to pay to person 2 under the leasing or rental agreement;
 (c) the payment relates to the event of an accident or other eventuality affecting the thing that is being leased or rented.
Example: Collision damage waiver insurance for a rental car.
 (2) For paragraph 765A(1)(y) of the Act, the arrangement is not a financial product.

7.1.07B  Specific things that are not financial products: bank drafts
  For paragraph 765A(1)(y) of the Act, a bank draft, including (but not limited to):
 (a) a cheque drawn by a financial institution on itself; or
 (b) a cheque drawn by a financial institution on a financial institution other than itself;
is not a financial product.

7.1.07C  Specific things that are not financial products: insurance under an overseas student health insurance contract
 (1) For paragraph 765A(1)(y) of the Act, insurance under an overseas student health insurance contract is