The legislation has not yet been passed. In response to the draft legislation, the FPA suggested that “derivatives” was not appropriate classification and the appropriate authorisation should be “superannuation.” AFMA submitted the existing argument that standard form instalment warrants (and many other warrants) are securities or interests in managed investment schemes, with a useful summary of the law. Currently, many warrants are “securities”, but the nature of the warrant currently varies depending on the nature of the underlying product and this affects its legal classification. An instalment warrant over real property is most likely a derivative as such property is not a financial product itself.
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