Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p29
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 29/49)
Character Range: 1054433–1056950

(3) For paragraph 981F(d) of the Act, this regulation applies if:
 (a) a financial services licensee ceases to carry on a particular activity authorised by the financial services licence; and
 (b) money is paid in connection with that activity.
 (4) For each person who is entitled to be paid money from an account of the financial services licensee maintained for section 981B of the Act, the account is taken to be subject to a trust in favour of the person.
 (5) If money in an account of the financial services licensee maintained for section 981B of the Act has been invested, for each person who is entitled to be paid money from the account, the investment is taken to be subject to a trust in favour of the person.
 (6) Money in the account of the financial services licensee maintained for section 981B of the Act is to be paid as follows:
 (a) the first payment is of money that has been paid into the account in error;
 (b) if money has been received on behalf of insureds in accordance with a contract of insurance, the second payment is payment to each insured person who is entitled to be paid money from the account, in the following order:
 (i) the amounts that the insured persons are entitled to receive from the moneys in the account in respect of claims that have been made;
 (ii) the amounts that the insured persons are entitled to receive from the moneys in the account in respect of other matters;
 (c) if:
 (i) paragraph (b) has been complied with; or
 (ii) paragraph (b) does not apply;
  the next payment is payment to each person who is entitled to be paid money from the account;
 (d) if the money in the account is not sufficient to be paid in accordance with paragraph (a), (b) or (c), the money in the account must be paid in proportion to the amount of each person's entitlement;
 (e) if there is money remaining in the account after payments made in accordance with paragraphs (a), (b) and (c), the remaining money is taken to be money payable to the financial services licensee.
 (7) This regulation applies despite anything to the contrary in the Bankruptcy Act 1966 or a law relating to companies.

7.8.04  Money to which Subdivision A of Division 2 of Part 7.8 of the Act applies taken to be held in trust: breach of financial services law
  For paragraph 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