Corporations Amendment Regulations 2002 (No. 3) (41 of 2002)

Schedule 1   Amendments commencing at 12.02 am (in the Australian Capital Territory) on 11 March 2002

[40]   After subregulation 7.8.01 (5)

insert

(6) For subparagraph 981B (1) (b) (iv) of the Act, money received under section 1017E of the Act is money which may be paid into:

(a) an account to which section 981B relates; or

(b) an insurance broking account maintained under section 26 of the Insurance (Agents and Brokers) Act 1984.

(7) For paragraph 981B (1) (c) of the Act, if money received under section 1017E of the Act is paid into an account under subregulation (6), Part 7.8 of the Act applies to the money.

Note See also subregulation 7.9.08 (3).

(8) For paragraph 981B (1) (c) of the Act, if a financial services licensee is required to call margins from a client under the operating rules of a licensed financial services market:

(a) the financial services licensee may operate an account to which that paragraph applies as:

(i) a clients' segregated account; or

(ii) a trust account;

in accordance with the operating rules of the licensed financial market; and

(b) if:

(i) the account is operated outside Australia; and

(ii) the law in force in the jurisdiction where it is maintained requires the account to be designated in a particular way;

the financial services licensee must designate the account in that way.

Note The operating rules of a licensed financial market may require client monies including moneys used for margining to be held either in a trust account or in a client segregated account.

Subregulation (5) will not apply to financial services licensees that are not direct participants of a financial services market.

(9) For subparagraph 981B (1) (b) (iv) of the Act, if an account is operated in accordance with subregulation (8), all money received by the financial services licensee under Subdivision A of Division 2 of Part 7.8 of the Act is money that may be paid into that account.

(10) Subregulation (8) does not affect the operation of section 981E of the Act.