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Financial product
Practical Law ANZ Glossary w-013-3820 (Approx. 3 pages)
Glossary
Financial product
For the purposes of Chapter 7 of the Corporations Act 2001 (Cth) (CA 2001), a facility for the purpose of:
- Making a financial investment (see section 763B, CA 2001).
- Managing financial risk (see section 763C, CA 2001).
- Making non-cash payments (see section 763D, CA 2001).
(Section 763A, CA 2001.)
A facility may not be a financial product if the aspect of the facility that allows a person to make a financial investment, manage a financial risk or make non-cash payments is an incidental aspect of the facility (section 763E, CA 2001).
The CA 2001 and Corporations Regulations 2001 (Cth) (Corporations Regulations) specify things that are:
- Always financial products, unless excluded (see section 764A, CA 2001 and Part 7.1, Corporations Regulations). These include, among other things, securities, bonds, superannuation, interests in managed investment schemes, life insurance, interests in litigation funding schemes and arrangements, general insurance, derivatives and margin lending facilities.
- Excluded from being a financial product (see section 765A, CA 2001 and Part 7.1, Corporations Regulations). The Corporations Regulations in particular sets out a number of specific things that are not financial products, including (amongst other things) credit facilities, superannuation interests, surety bonds and rental agreements.
Division 3 financial products are a subset of financial products.
For information about consumer protection provisions for financial products, see Checklist, Financial services and financial products: consumer protection prohibitions.
For the purposes of Chapter 8 of the CA 2001, financial products essentially include shares, debentures and interests in managed investment schemes, and certain rights, interests and options in them (section 1200A, CA 2001).