CORPORATIONS ACT 2001
Ch 7 inserted by No 122 of 2001, s 3, Sch 1, Pt 1
1] (effective 11 March 2002).
As Act No 122 of 2001 repealed Ch 7 and 8 the history notes for Ch 7 use
and references to the former provisions have been removed.
OTHER PROVISIONS RELATING TO CONDUCT ETC. CONNECTED WITH FINANCIAL PRODUCTS AND FINANCIAL SERVICES, OTHER THAN FINANCIAL PRODUCT DISCLOSURE
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Subject to subsection (2), the licensee must ensure that property to which this Division applies is only dealt with in accordance with:
(a) the requirements (if any) specified in regulations made for the purposes of this paragraph; and
(b) subject to those requirements:
(i) the terms and conditions on which the property was given to the licensee; and
(ii) any subsequent instructions given by the client.
Note: Failure to comply with this subsection is an offence (see
(a) the financial service referred to in subparagraph
(a)(i) is or relates to a dealing in a derivative; or
(b) the financial product referred to in subparagraph
(a)(ii) is a derivative;
the property 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).
However, if the property is derivative retail client property, subsection (2) only applies to an obligation if:
(a) the entry into of the derivative referred to in paragraph (2)(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.
S 984B(3) inserted by No 25 of 2017, s 3, Sch 5 (effective 4 April 2018).
S 984B inserted by No 122 of 2001, s 3, Sch 1, Pt 1