THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 866   DEALER TO KEEP TRUST ACCOUNT  

866(1)  (Trust account to be opened)  

A licensee must open and maintain:

(a)  an account, designated as a trust account, with an Australian ADI; or

(b)  2 or more such accounts.

866(2)  (Exclusion)  

Where a condition of a licence prohibits the licensee from holding money in trust for the licensee's clients, subsection (1) does not apply in relation to the licensee unless and until the licensee receives money that section 867 requires the licensee to pay into a trust account.

866(3)  (Contravention an offence)  

A person who contravenes subsection (1) is guilty of an offence.

866(4)  (Intent to defraud)  

A person who, with intent to defraud, contravenes subsection (1) is guilty of an offence.