Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p30
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 30/49)
Character Range: 1056727–1059429

981H(3)(b) of the Act, if client money is held by an investment mentioned in subregulation 7.8.02(5) following a breach of a financial services law:
 (a) the money is subject to a trust in favour of the client to the extent that the client is entitled to the money; and
 (b) any investment of the money is subject to a trust in favour of the client to the extent that the client is entitled to the investment; and
 (c) the proceeds of a realisation of an investment of the money are subject to a trust in favour of the client to the extent that the client is entitled to the proceeds.

7.8.05  Money to which Subdivision A of Division 2 of Part 7.8 of the Act applies taken to be held in trust: risk accepted by insurer
 (1) For paragraph 981H(3)(b) of the Act, this regulation applies if, in relation to an insurance product:
 (a) a financial services licensee is holding money to which Subdivision A of Division 2 of Part 7.8 of the Act applies; and
 (b) the risk in relation to the insurance product has been accepted by an insurer.
 (2) The financial services licensee holds the money on trust for the insurer in accordance with Division 2 of Part 7.8 of the Act, subject to the agreement of the insurer.
 (3) This regulation does not affect the operation of regulations 7.8.03 and 7.8.08.
 (4) For paragraph 981C(1)(c) of the Act, if money to which this regulation applies is held in an account maintained for section 981B of the Act:
 (a) the financial services licensee is entitled to the interest on the account; and
 (b) the interest on the account is not required to be paid into the account.

Subdivision AA—Client money reporting rules

7.8.05A  Definitions for Subdivision AA of Division 2
  In this Subdivision:
client money reporting infringement notice means an infringement notice given under regulation 7.8.05C.
client money reporting infringement notice period has the meaning given by subregulation 7.8.05H(2).
recipient, in relation to a client money reporting infringement notice, means the person to whom ASIC gives the infringement notice, or intends to give the infringement notice, under regulation 7.8.05C.

7.8.05B  Enforceable undertakings
 (1) For the purposes of paragraph 981N(1)(d) of the Act, ASIC may accept a written undertaking, given by a person who is alleged to have contravened subsection 981M(1) of the Act, as an alternative to civil proceedings.
 (2) Without limiting subregulation (1), ASIC may accept an undertaking that includes any of the following:
 (a) an undertaking to take specified action within a specified period;
 (b) an undertaking to refrain from taking specified action;
 (c) an undertaking to pay a specified amount within a specified period