Commonwealth legislation

Banking Act 1959 - Declaration of Covered Financial Products (27/10/2008)

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legislative instrument

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This instrument, made by the Treasurer under subsection 5(8) of the Banking Act 1959, declares a list of deposit and transaction account types (for example: savings, call, term, current/cheque, debit and transaction accounts, mortgage offset accounts, trustee and retirement savings accounts, farm management deposits and similar deposit accounts) to be “covered financial products.” It does not itself set fees or entitlements; it changes which products are legally classified as covered. The Treasurer decides the classification; deposit-taking institutions must identify which of their accounts meet the listed definitions and conditions.

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Banking Act 1959

DECLARATION OF COVERED FINANCIAL PRODUCTS

I, WAYNE MAXWELL SWAN, Treasurer, pursuant to subsection 5(8) of the Banking Act 1959 DECLARE that the financial products specified below are covered financial products.

(a) Saving accounts

(b) Call accounts

(d) Current accounts

(e) Cheque accounts

(f) Debit card accounts

(g) Transactions accounts

(h) Personal basic account

(i) Cash management accounts

(j) Farm management deposits

(k) Pensioner deeming accounts

(l) Mortgage offset accounts, either 100 per cent or partial offset, that are separate deposit accounts

(m) Trustee accounts

(n) Retirement Savings Accounts

(o) First home saver accounts that are deposit accounts

(p) Other deposit accounts that meet the following conditions:

(i) the terms applicable to the deposit do not permit the amount from time to time standing to the credit of the facility to be reduced otherwise than as a result of one or more of the following:

– a withdrawal, transfer or debit on the instruction of, or by authority of, the depositor, not being on account of entry fees, exit fees or charges for the management of the funds (but this does not exclude charges for the maintenance of the facility itself);

– a payment of charges or duties on deposits into, or withdrawals from, the facility that are payable under a law of the Commonwealth or of a State or Territory;

– a payment that a law of the Commonwealth, or of a State or Territory, requires to be made out of the facility;

– a payment that an order of a court requires to be made out of the facility;

– the exercise of a right to combine accounts;

– the correction of an error; and

(ii) any return to be generated for the depositor on the amount from time to time standing to the credit of the deposit is an amount that is set out in, or that is calculated by reference to a rate or rates that are set out in, the governing terms.

Dated: 27 October 2008

Wayne Swan

Treasurer

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

Banking Act 1959 Banking Act 1959