Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS  

Division 5 - Provisions common to both kinds of compensation arrangements  

SECTION 892B   HOW PART 7.5 REGULATED FUNDS ARE TO BE KEPT  

892B(1)    

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 Part 7.5 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)    

The regulations may impose additional requirements to be complied with in relation to the keeping of a Part 7.5 regulated fund that covers 2 or more financial markets.

892B(3)    

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 Part 7.5 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) ).