Corporations Amendment Regulations 2003 (No. 4) (126 of 2003)

Schedule 1   Amendments

[5]   Part 7.1, after Division 4

insert

Division 5 Custodial or depository services

7.1.40 Conduct that does not constitute the provision of a custodial or depository service

For paragraph 766E (3) (e) of the Act, conduct that is mentioned in subsection 766E (1) of the Act does not constitute providing a custodial or depository service if:

(a) the financial product held by the provider is a basic deposit product (within the definition in section 761A of the Act) or is an account mentioned in subsection 981B (1) of the Act; or

(b) the client is an associate of the provider (within the meaning of Division 2 of Part 1.2 of the Act); or

(c) the provider and its associates have no more than 20 clients in aggregate for all custodial or depository services that they provide; or

(d) the financial product is held as part of the arrangements for securing obligations under:

(i) a credit facility; or

(ii) a debenture that is held as trustee under a trust deed:

(A) entered into under section 283AA of the Act or former section 260FA of the Corporations Law of a State or Territory; or

(B) mentioned in former section 1052 of the Corporations Law of a State or Territory; or

(e) the provider is a participant in a licensed market and the financial product held is a derivative acquired on the licensed market by the provider on behalf of a client; or

(f) the provider is a participant in a licensed clearing and settlement facility and the financial product held is a derivative registered on the licensed clearing and settlement facility by the provider on behalf of the client; or

(g) the financial product is held under an order of the Court.