CORPORATIONS ACT 2001 - SECT 763E What if a financial product is only incidental?

CORPORATIONS ACT 2001 - SECT 763E

  (1)   If:

  (a)   something (the incidental product ) that, but for this section, would be a financial product because of this Subdivision is:

  (i)   an incidental component of a facility that also has other components; or

  (ii)   a facility that is incidental to one or more other facilities; and

  (b)   it is reasonable to assume that the main purpose of:

  (i)   if subparagraph   (a)(i) applies--the facility referred to in that subparagraph, when considered as a whole; or

  (ii)   if subparagraph   (a)(ii) applies--the incidental product, and the other facilities referred to in that subparagraph, when considered as a whole;

    is not a financial product purpose;

the incidental product is not a financial product because of this Subdivision (however, it may still be a financial product because of Subdivision C).

  (2)   In this section:

"financial product purpose" means a purpose of:

  (a)   making a financial investment; or

  (b)   managing financial risk; or

  (c)   making non - cash payments.