CORPORATIONS ACT 2001 - SECT 763A Meaning of financial product

CORPORATIONS ACT 2001 - SECT 763A

  (1)   A financial product is a facility through which, or through the acquisition of which, a person does one or more of the following:

  (a)   makes a financial investment;

  (b)   manages financial risk;

  (c)   makes non - cash payments.

This has effect subject to section   763E.

  (2)   A particular facility that is of a kind through which people commonly make financial investments, manage financial risks or make non - cash payments is a financial product even if that facility is acquired by a particular person for some other purpose.

  (3)   A facility does not cease to be a financial product merely because:

  (a)   the facility has been acquired by a person other than the person to whom it was originally issued; and

  (b)   that person, in acquiring the product, was not making a financial investment or managing a financial risk.