Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.8.01A

Wholesale client money

    For the purposes of paragraph   981A(4)(a) of the Act, money paid as mentioned in subsection   981A(1) of the Act is exempt from Subdivision A of Division   2 of Part   7.8 of the Act at a time if:

  (a)   at that time the licensee has the client's written agreement to the money being dealt with other than in accordance with that Subdivision; and

Note 1:   It is not necessary for the agreement to mention that Subdivision explicitly.

Note 2:   If the licensee obtains the agreement after the money is paid, that Subdivision ceases to apply to the money when the licensee obtains the agreement.

  (b)   either:

  (i)   the financial service referred to in subparagraph   981A(1)(a)(i) of the Act is or relates to a dealing in a derivative; or

  (ii)   the financial product referred to in subparagraph   981A(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 money was paid; and

  (ii)   section   761GA of the Act (about sophisticated investors) did not apply.


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