CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 5 - Provisions common to both kinds of compensation arrangements  

SECTION 892B   HOW REGULATED FUNDS ARE TO BE KEPT  

892B(1)   [ Keeping of money]  

Money in:


(a) a fidelity fund that is the source, or a source, of funds under Division 3 arrangements; or


(b) the NGF;

must, until applied in paying claims or otherwise spent for the purposes of this Part, or invested in accordance with section 892C , be kept by the relevant authority in an account or accounts:


(c) with an Australian ADI; or


(d) of a kind prescribed by regulations made for the purposes of this paragraph;

separate from any account or accounts in which other money is kept.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

892B(2)   [ Additional requirements]  

The regulations may impose additional requirements to be complied with in relation to the keeping of a regulated fund that covers 2 or more financial markets.

892B(3)   [ Keeping of money]  

If:


(a) a source of funds under Division 3 arrangements for a financial market is something other than a fidelity fund; and


(b) the operator of the market, or a person involved in the administration of the arrangements, receives money from that source of funds;

the money received must, until applied in paying claims or otherwise spent for the purposes of this Part, or invested in accordance with section 892C , be kept by the relevant authority in an account or accounts:


(c) with an Australian ADI; or


(d) of a kind prescribed by regulations made for the purposes of this paragraph;

separate from any account or accounts in which other money is kept.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).


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