CORPORATIONS REGULATIONS 2001 - REG 7.1.07G Specific things that are not financial products: electronic funds transfers

CORPORATIONS REGULATIONS 2001 - REG 7.1.07G

    For paragraph   765A(1)(y) of the Act, a non - cash payment facility is not a financial product if:

  (a)   the issuer is:

  (i)   a body corporate that is an ADI (within the meaning of the Banking Act 1959 ); or

  (ii)   an operator of a payment system; and

  (b)   under the facility, as instructed by the client, the issuer makes money available (or causes it to be made available) to a person nominated by the client:

  (i)   within 2 business days of receiving the client's instruction; or

  (ii)   within the time reasonably required to complete the transaction subject to any constraints imposed by law; and

  (c)   under the facility the funds are transferred by electronic means for collection by, or for the credit of, the payer or another person; and

  (d)   the issuer and the payer do not have a standing arrangement to transfer funds in this manner.

Example:   Telegraphic transfers and international money transfers offered by banks and remittance dealers.