5Entities covered by the Act

5 Entities covered by the Act

(1) This Act deals with financial sector entities. (2) A financial sector entity is: (a) a registered entity; or (b) a regulated entity; or (c) a corporation to which section 5A applies; or (d) a discretionary mutual fund; or (e) a person who: (i) provides a financial service (within the meaning of the Corporations Act 2001); and (ii) is not an entity, corporation or fund referred to in paragraphs (a) to (d) of this subsection; or (f) a person who: (i) is a participant in a payment system (within the meaning of section 7 of the Payment Systems (Regulation) Act 1998); and (ii) is not an entity, corporation or fund referred to in paragraphs (a) to (d) of this subsection. (3) A registered entity is a corporation whose name is entered in the Register of Entities kept by APRA under section 8. (4) A regulated entity is any of the following: (a) a body regulated by APRA (within the meaning of subsection 3(2) of the Australian Prudential Regulation Authority Act 1998); (c) a subsidiary of an ADI, or a subsidiary of an authorised NOHC, within the meaning of the Banking Act 1959. (5) A discretionary mutual fund is a fund (however constituted) for making payments on the happening of a specified event (where there is uncertainty as to whether, or when, the event will happen), that is a fund: (a) to which 2 or more persons contribute, and: (i) out of which payments may be made in respect of liabilities, losses, damages or expenses of the contributors; and (ii) that is governed by rules under which any such payment for the benefit of a contributor is subject to a discretion of a person or body; or (b) that is declared to be a discretionary mutual fund, or included in a class of funds that are declared to be discretionary mutual funds, by regulations made for the purposes of this paragraph. (6) However, a fund (however constituted) is not a discretionary mutual fund if: (a) a contributor has a right, in law or equity, to a payment of a kind referred to in subparagraph (5)(a)(i); or (b) the fund is: (i) declared not to be a discretionary mutual fund; or (ii) included in a class of funds that are declared not to be discretionary mutual funds; by regulations made for the purposes of this paragraph. (7) Despite subsection (2), the Reserve Bank is not a financial sector entity.