Document ID: chunk:federal_register_of_legislation:C2008A00105:clause:1_12
Version: federal_register_of_legislation:C2008A00105
Segment Type: clause
Provision Reference: sch 1 cl 12
Character Range: 5932–8414

12  At the end of section 5
Add:

Protected account

 (4) Subject to subsections (5), (6) and (7), a protected account is an account or covered financial product that is kept by an account‑holder (whether alone or jointly with one or more other account‑holders) with an ADI and either:
 (a) is an account that is prescribed by the regulations for the purposes of this paragraph; or
 (b) is an account, or covered financial product, that is kept under an agreement between the account‑holder and the ADI requiring the ADI to pay the account‑holder, on demand by the account‑holder or at a time agreed by them, the net credit balance of the account or covered financial product at the time of the demand or the agreed time (as appropriate).

Note: Paragraph (a)—the regulations may prescribe the account by reference to a class of accounts: see subsection 13(3) of the Legislative Instruments Act 2003.

 (5) An account is not a protected account on and after 12 October 2011 unless:
 (a) it is recorded in Australian currency; or
 (b) it is kept with an ADI that is a declared ADI on 12 October 2011.

 (6) A covered financial product that is kept with an ADI and is not an account is not a protected account if APRA applies under section 14F on or after 12 October 2011 for an order that the ADI be wound up.

 (7) An account or covered financial product is not a protected account if the account or covered financial product is prescribed by the regulations for the purposes of this subsection.

Note: The regulations may prescribe the account or covered financial product by reference to a class of accounts or financial products: see subsection 13(3) of the Legislative Instruments Act 2003.

Covered financial product

 (8) The Minister may declare that a specified financial product is a covered financial product.

Note: The declaration may specify the product by reference to a class of financial products: see subsection 13(3) of the Legislative Instruments Act 2003.

 (9) A declaration made under subsection (8), or an amendment of the declaration, is a legislative instrument, but neither section 42 (disallowance) nor Part 6 (sunsetting) of the Legislative Instruments Act 2003 applies to the declaration or amendment.

 (10) The declaration or amendment takes effect from the time it is made, despite subsections 12(1) and (2) of the Legislative Instruments Act 2003.

Note: The following heading to subsection 5(3) is inserted "Relevant group of bodies corporate".