Financial products in the same class
10.2.74 Financial products in the same class
For subsection 1410(2) of the Act, this regulation identifies what constitutes a class of financial products for subsection 1438(1) of the Act.
Subject to subregulation (2A), a managed investment product is in the same class as another financial product only if:
the other financial product is a managed investment product; and
both products are interests in registered schemes that have the same responsible entity; and
at the FSR commencement, the responsible entity’s licence to operate registered schemes would have authorised the operation of both registered schemes.
A financial product that is an interest in a registered scheme is in the same class as another financial product if the other financial product is an interest in the same registered scheme.
A derivative is in the same class as another financial product only if:
the other financial product is a derivative; and
either:
each of the derivatives was entered into or acquired on a financial market; or
none of the derivatives was entered into or acquired on a financial market.
A life risk insurance product is in the same class as another financial product only if the other financial product is a life risk insurance product.
An investment life insurance product is in the same class as another financial product only if the other financial product is an investment life insurance product.
An insurance product (other than a life risk insurance product or an investment life product) is in the same class as another financial product only if:
the other financial product is an insurance product other than a life risk insurance product or an investment life product; and
both products:
provide the same kind of cover; or
provide cover in relation to the same kind of asset (for example, a motor vehicle).
A superannuation interest is in the same class as another financial product only if the other financial product is a superannuation interest.
Superannuation interest is defined in subsection 10(1) of the SIS Act.
An RSA product is in the same class as another financial product only if the other financial product is an RSA product.
A deposit product is in the same class as another financial product only if the other financial product is a deposit product.
A facility for making non‑cash payments that is related to a deposit product is in the same class as another financial product only if the other financial product is a facility for making non‑cash payments that is related to a deposit product.
Non‑cash payments are explained in section 763D of the Act.
In this regulation:
deposit product means a deposit‑taking facility made available by an ADI (within the meaning of the Banking Act 1959) in the course of its banking business (within the meaning of that Act), other than an RSA.
A financial product mentioned in paragraph 764A(1)(k) of the Act is in the same class as another financial product only if the other financial product is a financial product mentioned in paragraph 764A(1)(k) of the Act.
A warrant is in the same class as another financial product only if the other financial product is a warrant.
This Act’s bill:Explanatory statement
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