Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.5.72B

  (1)   If:

  (a)   a claim made by a claimant under this Division relates to a loss connected with a particular participant, or past participant, in a financial market; and

  (b)   the loss is referable to a particular event or circumstance;

the sum of the amounts paid out of the Fund to the claimant (the maximum amount ) in connection with claims relating to losses connected with the participant or past participant that are referable to the event or circumstance (the eligible claims ):

  (c)   must not exceed $1 million; and

  (d)   to the extent that the eligible claims relate to cash held with the participant or past participant immediately before the event or circumstance--must not exceed $250,000.

  (2)   For the purposes of subregulation   (1):

  (a)   the SEGC must disregard an amount paid out of the Fund in connection with a claim to the extent to which the amount has been repaid to the Fund; and

  (b)   if money or other property has been recovered by, or on behalf, of the SEGC because of the exercise of a right or remedy in relation to the loss to which a claim relates, being a right or remedy of the claimant who makes the claim to which the SEGC is subrogated, the SEGC must disregard so much of the amount, or of the total of the amounts, paid out of the Fund in connection with the claim as does not exceed the sum of:

  (i)   the amount of that money; and

  (ii)   the value of so much (if any) of that other property as has not been, and is not required to be, supplied in respect of the claim.

  (3)   If:

  (a)   the participant or past participant becomes insolvent on a day before the eligible claims are settled by the SEGC (whether or not the insolvency is connected with the loss mentioned in paragraph   (1)(a)); and

  (b)   the sum of what would, apart from this subregulation, be the maximum amounts in relation to all claimants in connection with eligible claims (the total claimants' amounts ) exceeds the amount worked out under subregulations   7.5.72A(1) and (2);

the maximum amount in relation to the claimant is reduced by an amount worked out as follows:

where:

"claimant's amount" means the amount that would, apart from this subregulation, be the claimant's maximum amount.

"excess" means the amount of the excess mentioned in paragraph   (b).

  (4)   The SEGC may determine in writing:

  (a)   whether the claimant's claims are eligible claims; and

  (b)   an amount to be the maximum amount in relation to the eligible claims.

  (5)   If a determination is in force under paragraph   (4)(b), the amount paid out of the Fund to the claimant must not exceed the amount that has been determined.