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 7.8.05
MONEY TO WHICH SUBDIVISION A OF DIVISION 2 OF PART 7.8 OF THE ACT APPLIES TAKEN TO BE HELD IN TRUST: RISK ACCEPTED BY INSURER
7.8.05(1)
For paragraph 981H(3)(b) of the Act, this regulation applies if, in relation to an insurance product:
(a) a financial services licensee is holding money to which Subdivision A of Division 2 of Part 7.8 of the Act applies; and
(b) the risk in relation to the insurance product has been accepted by an insurer.
7.8.05(2)
The financial services licensee holds the money on trust for the insurer in accordance with Division 2 of Part 7.8 of the Act, subject to the agreement of the insurer.
7.8.05(3)
This regulation does not affect the operation of regulations 7.8.03 and 7.8.08 .
7.8.05(4)
For paragraph 981C(1)(c) of the Act, if money to which this regulation applies is held in an account maintained for section 981B of the Act:
(a) the financial services licensee is entitled to the interest on the account; and
(b) the interest on the account is not required to be paid into the account.
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, this regulation applies if, in relation to an insurance product:
(a) a financial services licensee is holding money to which Subdivision A of Division 2 of Part 7.8 of the Act applies; and
(b) the risk in relation to the insurance product has been accepted by an insurer.
7.8.05(2)
The financial services licensee holds the money on trust for the insurer in accordance with Division 2 of Part 7.8 of the Act, subject to the agreement of the insurer.
7.8.05(3)
This regulation does not affect the operation of regulations 7.8.03 and 7.8.08 .
7.8.05(4)
For paragraph 981C(1)(c) of the Act, if money to which this regulation applies is held in an account maintained for section 981B of the Act:
(a) the financial services licensee is entitled to the interest on the account; and
(b) the interest on the account is not required to be paid into the account.
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