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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

PART 7.5 - COMPENSATION REGIMES FOR FINANCIAL MARKETS    View history reference

Division 5 - Provisions common to both kinds of compensation arrangements    View history reference

SECTION 892B  HOW REGULATED FUNDS ARE TO BE KEPT  

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892B(1)  [Keeping of money]  


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 relevant 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)  [Additional requirements]  


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

892B(3)  [Keeping of money]  


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 relevant 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)).


 



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