Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.1.35

         (1)   For subsection 766C (7) of the Act, conduct is not taken to be dealing in a financial product if:

                (a)    the conduct is of a kind:

                          (i)    mentioned in paragraph 766C (1) (a), (d) or (e) of the Act; or

                         (ii)    mentioned in paragraph 766C (1) (b) of the Act, where it is the issue of a beneficial interest in a financial product, that arises from conduct that would constitute providing a custodial or depository service but for the operation of regulation 7.1.40; and

               (b)    the conduct is carried out by a person ( person 1 ) in relation to a product that person 1 holds on trust for,
or on behalf of, another person ( person 2 ) and the holding of that financial product would not constitute the
provision of a custodial or depository service because of paragraphs 7.1.40 (a), (b), (c), (d), (g) and (i).

         (2)   Subregulation (1) does not apply to conduct carried out by person 1 in relation to a financial product that is held under a custodial arrangement as defined in section 1012IA of the Act unless:

                (a)    person 2 is an associate of person 1; or

               (b)    the financial product is held in the manner mentioned in paragraph 7.1.40 (d).