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CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS    View history reference

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

Division 2 - Dealing with clients' money    View history reference

Subdivision A - Money other than loans    View history reference

SECTION 981D  

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

 View history reference
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).

[CCH Note 1: S 981D will be amended by No 25 of 2017, s 3, Sch 5[2], by inserting "(1)" before "Despite" (effective 4 April 2018).]

[CCH Note 2: S 981D(2) will be inserted by No 25 of 2017, s 3, Sch 5[3] (effective 4 April 2018). S 981D(2) will read:


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.

]


 



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