CORPORATIONS REGULATIONS 2001 - REG 7.1.07A Specific things that are not financial products: rental agreements

CORPORATIONS REGULATIONS 2001 - REG 7.1.07A

  (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.