Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p28
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 28/49)
Character Range: 1051807–1054682

in accordance with the written agreement between the financial services licensee and the client under subregulation (3).

7.8.02A  Accounts maintained for the purposes of section 981B of the Act—special rules for retail clients
 (1) Paragraph 7.8.02(1)(a) does not apply to a written direction to the extent the direction allows the financial services licensee to use derivative retail client money as mentioned in subregulation (3) of this regulation.
 (2) Paragraph 7.8.02(1)(c) does not apply to an entitlement of the financial services licensee to use derivative retail client money as mentioned in subregulation (3) of this regulation.
 (3) Subregulations (1) and (2) apply to using the money:
 (a) as the licensee's capital, including working capital; or
 (b) for the purpose of meeting obligations incurred by the licensee other than on behalf of the client; or
 (c) for the purpose of entering into, or meeting obligations under, transactions that the licensee enters into to hedge, counteract or offset the risk to the licensee associated with a transaction between the licensee and the client.

7.8.03  How money to be dealt with if licensee ceases to be licensed etc
 (1) For paragraph 981F(a) of the Act, this regulation applies if a financial services licensee ceases to be licensed (including a cessation because the financial services licensee's licence has been suspended or cancelled).
 (2) For paragraph 981F(b) of the Act, this regulation applies if a financial services licensee:
 (a) becomes insolvent under an administration; or
 (b) is the subject of any of the following arrangements:
 (i) the appointment of an administrator under section 436A, 436B or 436C of the Act;
 (ii) the commencement of winding up;
 (iii) the appointment of a receiver of property of the financial services licensee, whether by a court or otherwise;
 (iv) the appointment of a receiver and manager of property of the financial services licensee, whether by a court or otherwise;
 (v) entry into a compromise or arrangement with creditors of the financial services licensee, or a class of creditors;
 (vi) if the financial services licensee is deceased—administration of the estate of the financial services licensee under Part XI of the Bankruptcy Act 1966;
 (vii) if the financial services licensee is deceased—administration of the estate of the financial services licensee under the law of an external Territory that provides for the administration of the insolvent estate of a deceased person;
 (viii) an arrangement under the law of a foreign country that provides for a matter mentioned in subparagraphs (i) to (vii).
 (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)