Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 4 - NGF Compensation regime  

Subdivision 4.9 - Claims in respect of insolvent participants  

REGULATION 7.5.66   ORDERING OF ALTERNATIVE CLAIMS AND PREVENTION OF DOUBLE RECOVERY  

7.5.66(1)   [ Application]  

Subregulation (2) applies if:

(a) a participant has received under the agreement for a sale or purchase of securities by the participant on behalf of a person, the consideration for the sale or settlement documents in relation to the purchase, as the case may be; and

(b) subregulation 7.5.24(1) , 7.5.25(1) , 7.5.26(1) or 7.5.27(1) entitles the person to make a claim against the SEGC under Subdivision 4.3 in respect of the sale or purchase.

7.5.66(2)   [ Entitlement to make claim in respect of consideration or settlement documents]  

This Subdivision does not, because of:

(a) a dealer, being the participant or a partner in the participant, having become insolvent at a particular time; and

(b) the participant having received, under the agreement, the consideration or the settlement documents;

entitle the person to make a claim in respect of the consideration or the settlement documents, as the case may be, unless the participant's obligations to the person in respect of the sale or purchase, as the case may be, in so far as those obligations related to the consideration or the settlement documents, were discharged before that time.

7.5.66(3)   [ Allowance of other claims]  

If:

(a) because of a dealer having become insolvent on a particular day, this Subdivision entitles a person to make a claim (the first claim ) in respect of property; and

(b) because of a dealer having become insolvent on a later day, this Subdivision entitles a person to make another claim in respect of the property;

the SEGC must not allow the other claim unless:

(c) the person has made the first claim and the SEGC has allowed or disallowed it; or

(d) the SEGC is satisfied that if the first claim had been made the SEGC would have disallowed it; or

(e) the SEGC is satisfied that, when the person first became aware of the dealer mentioned in paragraph (b) having become insolvent on the later day:

(i) the first claim was barred; or

(ii) it was no longer reasonably practicable for the person to make the first claim before it became barred.

7.5.66(4)   [ Prevention of double recovery]  

If:

(a) at a particular time, the SEGC allows a claim in respect of property; and

(b) because of:

(i) a dealer having become insolvent (whether before, at or after that time); and

(ii) the property having, before that time, been entrusted or received as mentioned in paragraph 7.5.64(1) (b);

this Subdivision entitles the claimant to make another claim in respect of the property;

the SEGC must not allow the other claim.