Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p2
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 2572–5488

in accordance with the law in that place;
(ii) the financial services licensee has documented in writing that:
(A) it is satisfied that the property is held in a manner that, having regard to the relevant laws, provides reasonably effective protection in case of insolvency of the person holding the property; and
(B) the basis on which it is satisfied;
(c)  the custodial property is exempt from Subdivision A of Division 2 of Part 7.8 or Division 3 of Part 7.8 under regulation 7.8.01A, 7.8.06A or 7.8.06B of the Corporations Regulations 2001;
(d) where a person is providing a custodial or depository service as an authorised representative of the financial services licensee by holding custodial property on trust for the client of the financial services licensee if:
(i) the financial services licensee is liable to the client for the acts and omissions of the authorised representative as if they were the acts or omissions of the financial services licensee; and
(ii) revenue received from the client in relation to the provision of the custodial or depository service is revenue of the financial services licensee.
(4) The financial services licensee must have reasonable procedures for receiving instructions from the client in relation to the custodial property that include how the instructions are given and reasonable controls to ensure that the instructions are properly authorised and carried out.
(5) The financial services licensee must ensure that it, and do all things necessary to ensure that any person the financial services licensee directly or indirectly engages to hold custodial property:
(a) as far as practicable identifies the custodial property as property held on behalf of the person for whom it is held; and
(b) holds the custodial property separately from property in which the financial services licensee or the person holding the custodial property has an interest and from the property of any other person other than the client except in relation to custodial property that:
                     (A) comprises:
                         (i) a deposit taking facility of a body carrying on a business of accepting money on deposit including rights under that facility; or
                         (ii) securities (as defined in subsection 92(1)); or
                         (iii) derivatives; and
                     (B) is held separately from property in which the person holding the property or the financial services licensee has an interest other than as a trustee for a person that is not the financial services licensee, except where property is not held separately to comply with paragraph (6)(f).
(6) The financial services licensee must do all things necessary to ensure that if custodial property is not held separately from property in which the financial services licensee or the person holding the custodial property has an interest and separately from the property