Terrorism Insurance Act 2003 , section 41.

Towards Responsible Government , The Report of the National Commission of Audit , Phase One , p . 205 .

Terrorism Insurance Act 2003 , sections 6-8.

Terrorism Insurance Act 2003 , subsection 7(1).

Terrorism Insurance Act 2003 , section 3.

Australian Reinsurance Pool Corporation, Annual Report 2013 - 2014 , page 32.

Towards Responsible Government , The Report of the National Commission of Audit , Phase One , p . 205 .

ARPC Autumn 2013 ' Under the Cover' .

The Pottinger report examines alternative options which do not involve pooling in Section 6.7 of their report.

Tier A is CBDs of cities with populations over 1 million. Tier B is urban areas of all State capitals plus cities with populations over 100,000 for example, Newcastle, Geelong, Wollongong. Tier C is all other areas of Australia

Terrorism Insurance Regulations 2003 , No. 162, Explanatory Statement.

Terrorism Insurance Regulations 2003 , regulation 7 and Schedule 1, paragraph 2(d).

Pottinger Report, page 76.

Op cit, page 82.

Guy Carpenter, ' A Comparison of the Federal Terrorism Insurance Backstop Legislation', 8 January 2015.

Sturdevant, Matthew 31 December 2014, Hartford Courant, www.courant.com/business/connecticut insurance/hc terrorism insurance act expires 20141231 story.html, viewed 29 January 2015.

Lehrer, Eli, 23 December 2014, The Weekly Standard, www.weeklystandard.com/blogs/market fine after congress fails reauthorize fed backed terrorism risk insurance_822353.html, viewed 29 January 2015.

It is money paid by the client; or by a person acting on behalf of the client; or to the licensee in the licensee's capacity as a person acting on behalf of the client. See s981A of the Corporations Act for the full definition.

AFSLs may also hold property on their clients' behalf. Aside from being a different type of asset, client property has the same characteristics as client money for the purposes of regulation. See s984 of the Corporations Act for the full definition. References to client money in this document should be taken to include client property unless it is explicitly excluded.

But for a specific set of instances in which it may be withdrawn (see s981A of the Corporations Act and 7.8.02 of the Corporations Regulations).

It is also money paid by the client; or by a person acting on behalf of the client; or to the licensee in the licensee's capacity as a person acting on behalf of the client. See s 981A of the Corporations Act for the full definition.

AFSLs may also hold property on their clients' behalf. Aside from being a different type of asset, client property has the same characteristics as client money for the purposes of regulation. See s 984 of the Corporations Act for the full definition. References to client money in this document should be taken to include client property unless it is explicitly excluded.

See the Appendix C for further information.

The data included active investors from 2010 -2016.

See glossary for respective definitions.

Note that Diagram 5.1 provides a broad, high-level description of the treatment of client money.

ASIC Report 316: http://download.asic.gov.au/media/1344092/rep316-published-3-December-2012.pdf

See p 26, 'Government response to the Financial System Inquiry', www.treasury.gov.au/fsi

ASIC 2001, REP 205 Contracts for difference and retail investors , http://asic.gov.au/regulatory-resources/find-a-document/reports/rep-205-contracts-for-difference-and-retail-investors/

In addition, there are a number of important issues that an investor must understand when undertaking a financial transaction, such as how the product they are investing in works. Extending the logic that the issues that are important to the financial transaction, such as client money protections, should be disclosed and explicitly agreed to by the investor could result in the investor agreeing to a large volume of material, at which point the requirement would likely lose its impact.

ASIC 2012, REP 316 Review of client money handling practices in the retail OTC derivatives sector , http://asic.gov.au/regulatory-resources/find-a-document/reports/rep-316-review-of-client-money-handling-practices-in-the-retail-otc-derivatives-sector/

For the purposes of this proposed reform, the expression 'retail clients' also includes clients which would otherwise be retail clients but for satisfying the definition of a 'sophisticated investor' for the purposes of section 761GA of the Act.

BBY Ltd was an Australian stock broking, corporate advisory and asset management firm. Prior to its voluntary administration on 18 May 2015, it claimed to be the largest independent stockbroker in Australian and New Zealand by market share.

Referred to in the UK as the 'matched principal' model.

Annualised.

Annualised.

See Treasury options paper, 'Wholesale and Retail Clients Future of Financial Advice', January 2011.

Professional investors include financial services licensees, bodies regulated by APRA other than superannuation trustees acting for a trust holding less than $10 million in net assets, persons controlling $10 million or a body corporate or unincorporated body that carries on a business of investment in financial products, interests in land or other investments following an offer or invitation to the public.

Title transfer collateral arrangements in the UK allow firms to treat margin as their own working capital (rather than as client money).

ASIC Regulatory Guide 212, Client Money Relating to Dealing with OTC Derivatives , July 2010, p. 7