(1) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies as if section 1017E of the Act were modified by adding after subsection 1017E(1):
'(1A) This section also applies to money paid by a product provider in the following circumstances:
(a) the product provider knows, or believes on reasonable grounds, that money (the client's money ) will be paid to the product provider to acquire, or acquire an increased interest in, one or more of the financial products mentioned in paragraph (1)(a) or (b) from the product provider (whether or not the acquisition would be by a person as a retail client);
(i) the financial product or increased interest was offered in this jurisdiction; or
(ii) the application for the financial product or increased interest was made in this jurisdiction; or
(iii) the money will be received in this jurisdiction;
(c) before receiving the client's money, the product provider pays an equivalent amount of money (the product provider's money ) into an account described in subsection (2).'.
(2) For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act applies as if section 1017E of the Act were modified by adding after subsection 1017E(5):
'(5A) If subsection (1A) applies:
(a) the product provider is not required to comply with this section in relation to the client's money; and
(b) subsections (2A), (2B), (2C), (2D), (3), (4), (5) and (6) apply to the product provider's money as if the money had been paid by the person who paid, or is expected to pay, the client's money.'.
(3) For paragraph 1017E(3)(d) of the Act, money may be taken out of an account if:
(a) the circumstances described in the modified subsection 1017E(1A) of the Act exist; and
(b) after paying the product provider's money, the product provider becomes aware, or has reasonable grounds to believe, that the client's money will not be paid.