Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p1
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 1/43)
Character Range: 702782–705461

3                                                                 Regulation 7.5.64 (about claims in respect of insolvent participants)    The time at which the dealer becomes insolvent is on or after the joining day.

Division 5—Provisions common to both kinds of compensation arrangements

7.5.86  Excess money in National Guarantee Fund
 (1) The Minister may notify the SEGC that the Minister is satisfied that:
 (a) a market licensee specified in the notification is operating a financial market to which Division 4 of Part 7.5 of the Act applies; or
 (b) each market licensee specified in the notification is operating a financial market to which Division 4 of Part 7.5 of the Act applies.
 (2) For section 892G of the Act, if, on a day, the amount in the NGF is greater than the minimum amount identified in accordance with section 889I of the Act, the amount by which it is greater is excess money.

7.5.87  Excess money in fidelity fund
 (1) For section 892G of the Act, if, on a day:
 (a) a fidelity fund (other than the NGF) is the sole source of funds available to cover claims for the purposes of Division 3 arrangements; and
 (b) the amount in the fidelity fund is greater than the minimum amount of cover identified in accordance with paragraph 882A(4)(a) of the Act;
the amount by which it is greater is excess money.
 (2) For section 892G of the Act, if, on a day:
 (a) a fidelity fund (other than the NGF) is not the sole source of funds available to cover claims for the purposes of Division 3 arrangements; and
 (b) the amount in the fidelity fund is greater than the minimum amount of cover specified in accordance with paragraph 882A(4)(a) of the Act, reduced by the sum of the amounts of cover from each other source of funds available for the purposes of the same Division 3 arrangements;
the amount by which it is greater is excess money.

7.5.88  Minister's arrangements for use of excess money from compensation funds
 (1) The Minister may approve, in writing, a matter as an approved purpose for which excess money may be used by a market licensee.
 (2) The matter must relate to:
 (a) the creation of, or participation in, a program for the development of the financial industry that:
 (i) is conducted primarily for a public benefit; and
 (ii) is not conducted primarily to promote the profitability of the commercial operations of any market; or
 (b) the payment of premiums for fidelity insurance or other compensation arrangements for the financial market as part of an approved compensation arrangement for Division 3 of Part 7.5 of the Act; or
 (c) costs paid by the market licensee in relation to ASIC's responsibilities for market supervision