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 7.8 - OTHER PROVISIONS RELATING TO CONDUCT ETC. CONNECTED WITH FINANCIAL PRODUCTS AND FINANCIAL SERVICES, OTHER THAN FINANCIAL PRODUCT DISCLOSURE  

Division 2 - Dealing with clients ' money  

Subdivision A - Money other than loans  

SECTION 981D   MONEY RELATED TO DERIVATIVES MAY BE USED FOR GENERAL MARGINING ETC. PURPOSES  

981D(1)    
Despite anything in regulations made for the purposes of section 981C , if:

(a) the financial service referred to in subparagraph 981A(1) (a)(i) is or relates to a dealing in a derivative; or

(b) the financial product referred to in subparagraph 981A(1) (a)(ii) is a derivative;

the money concerned may also be used for the purpose of meeting obligations incurred by the licensee in connection with margining, guaranteeing, securing, transferring, adjusting or settling dealings in derivatives by the licensee (including dealings on behalf of people other than the client).

981D(2)    

However, if the money is derivative retail client money, subsection (1) only applies to an obligation if:

(a) the entry into of the derivative referred to in paragraph (1)(a) or (b) was or will be cleared through an authorised clearing and settlement facility; and

(b) the licensee incurred the obligation, in connection with the derivative, under the operating rules of the facility.