Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p39
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 39/49)
Character Range: 1079764–1082445

given, that Division ceases to apply to the property when the licensee obtains the agreement.
 (b) either:
 (i) the financial service referred to in subparagraph 984A(1)(a)(i) of the Act is or relates to a dealing in a derivative; or
 (ii) the financial product referred to in subparagraph 984A(1)(a)(ii) of the Act is a derivative; and
 (c) the entry into of the derivative was not or will not be cleared through a clearing and settlement facility; and
 (d) the financial service or product would have been provided to the client as a wholesale client if:
 (i) the service or product were provided to the client when the property was given; and
 (ii) section 761GA of the Act (about sophisticated investors) did not apply.

7.8.07  How property to which Division 3 of Part 7.8 of the Act to be dealt with
 (1) For paragraph 984B(1)(a) of the Act, this regulation sets out requirements in relation to property to which Division 3 of Part 7.8 of the Act applies.
 (2) The financial services licensee must hold the property on trust for the benefit of the person who is entitled to it.
 (3) If the client requests the financial services licensee, in writing, to deposit the property in safe custody with an ADI:
 (a) the licensee must deposit the property; or
 (b) if the licensee does not comply with the request for any reason, the licensee must notify the client, as soon as practicable, of the failure to comply with the request.
 (4) If the client requests the financial services licensee, in writing, to deposit the property in safe custody with a financial services licensee that provides a custodial or depositary service:
 (a) the licensee must deposit the property; or
 (b) if the licensee does not comply with the request for any reason, the licensee must notify the client, as soon as practicable, of the failure to comply with the request.
 (5) If the client requests the financial services licensee, in writing, to deposit the property in safe custody in the place where the property was deposited with, or received by, the licensee:
 (a) the licensee must deposit the property in accordance with the request; and
 (b) if the licensee does not comply with the request for any reason, the licensee must notify the client, as soon as practicable, of the failure to comply with the request.
 (6) If the client requests that the body corporate that issued or made available the securities, managed investment products or foreign passport fund products underlying the property register the property in the name of a nominee controlled by the financial services licensee, the financial services licensee must arrange for the body corporate to register the securities, managed