THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 867   WHAT IS TO BE PAID INTO DEALER'S TRUST ACCOUNT  

867(1)  (Money to go into trust)  

A licensee must pay into a trust account:

(a)  money held by the licensee in trust for a client; and

(b)  without limiting the generality of paragraph (a), money received by the licensee from a client, other than:

(i) money received in respect of brokerage or any other proper charge;

(ii) money received in payment or part payment for securities delivered to the licensee before the money is received; or

(iii) money in relation to which the licensee is required to comply with section 872.

867(2)  (Exclusions)  

Subsection (1) does not apply in relation to a payment order that:

(a)  is payable to, or to the order of, a specified person or bearer; and

(b)  the licensee receives from, or on behalf of, a client with express or implied instructions that it is to be delivered to the person to whom it is payable;

unless the payee in the payment order is the licensee, a partner of the licensee or a firm in which the licensee is a partner.

867(3)  (Contravention an offence)  

A person who contravenes subsection (1) is guilty of an offence.

867(4)  (Intent to defraud)  

A person who, with intent to defraud, contravenes subsection (1) is guilty of an offence.