Corporations Regulations 2001
CHAPTER 7
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FINANCIAL SERVICES AND MARKETS
PART 7.8
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OTHER PROVISIONS RELATING TO CONDUCT ETC CONNECTED WITH FINANCIAL PRODUCTS AND FINANCIAL SERVICES, OTHER THAN FINANCIAL PRODUCT DISCLOSURE
Division 2
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Dealing with clients
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money
Subdivision A
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Money other than loans
REGULATION 7.8.04
7.8.04
MONEY TO WHICH SUBDIVISION A OF DIVISION 2 OF PART 7.8 OF THE ACT APPLIES TAKEN TO BE HELD IN TRUST: BREACH OF FINANCIAL SERVICES LAW
For paragraph 981H(3) (b) of the Act, if client money is held by an investment mentioned in subregulation 7.8.02(5) following a breach of a financial services law:
(a) the money is subject to a trust in favour of the client to the extent that the client is entitled to the money; and
(b) any investment of the money is subject to a trust in favour of the client to the extent that the client is entitled to the investment; and
(c) the proceeds of a realisation of an investment of the money are subject to a trust in favour of the client to the extent that the client is entitled to the proceeds.
View history note
Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
For paragraph 981H(3) (b) of the Act, if client money is held by an investment mentioned in subregulation 7.8.02(5) following a breach of a financial services law:
(a) the money is subject to a trust in favour of the client to the extent that the client is entitled to the money; and
(b) any investment of the money is subject to a trust in favour of the client to the extent that the client is entitled to the investment; and
(c) the proceeds of a realisation of an investment of the money are subject to a trust in favour of the client to the extent that the client is entitled to the proceeds.
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