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Financial service
Practical Law ANZ Glossary w-013-3821 (Approx. 3 pages)
Glossary
Financial service
For the purposes of Chapter 7 of the Corporations Act 2001 (Cth) (CA 2001), a financial service generally includes:
- Providing financial product advice (see section 766B, CA 2001).
- Dealing in a financial product (see section 766C, CA 2001).
- Making a market for a financial product (see section 766D, CA 2001).
- Operating a registered managed investment scheme (other than as an agent or employee, or for the purposes of winding it up).
- Providing a custodial or depository service (see section 766E, CA 2001).
- Providing a crowd-sourced funding service (see section 766F, CA 2001).
- A trustee company providing a traditional trustee company service (note that a trustee company may also provide the kinds of financial services referred to above).
- Engaging in conduct that the regulations prescribe as a financial service.
(Section 766A, CA 2001.)
Part 7.1, Divisions 3, 4, 5 and 6 of the Corporations Regulations 2001 (Cth) (Corporations Regulations) also set out a number of specific circumstances in which persons are and are not taken to provide a financial service.
An Australian financial services licence is required to provide financial services to clients in Australia.
For further information about the meaning of:
- Providing, dealing and making a market for a financial product, see sections 766B-766D of the CA 2001.
- Providing a custodial or depository service, see section 766E of the CA 2001.
- Providing a crowd-sourced funding service, see section 766F of the CA 2001 (also see Practice note, Crowd-sourced funding: public and proprietary companies).
- Conduct prescribed by the regulations, see Part 7.1 of the Corporations Regulations 2001 (Cth).
For information about consumer protection provisions relating to financial products, see Checklist, Financial services and financial products: consumer protection prohibitions.