(1)  Money that is entrusted to or held by a law practice for or in connection with –

(a) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate is required to hold an Australian financial services licence covering the provision of the service (whether or not such a licence is held at any relevant time); or

(b) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate provides the service as a representative of another person who carries on a financial services business (whether or not the practice or associate is an authorised representative at any relevant time) –

is not trust money for the purposes of this Act.

(2)  Without limiting subsection (1) , money that is entrusted to or held by a law practice for or in connection with –

(a) a managed investment scheme; or

(b) mortgage financing; or

(c) a mortgage investment scheme –

undertaken by the practice is not trust money for the purposes of this Act.

(3)  Without limiting subsections (1) and (2) , money that is entrusted to or held by a law practice for investment purposes, whether on its own account or as agent, is not trust money for the purposes of this Act, unless –

(a) the money was entrusted to or held by the practice –

(i) in the ordinary course of legal practice; and

(ii) primarily in connection with the provision of legal services to or at the direction of the client; and

(b) the investment is or is to be made –

(i) in the ordinary course of legal practice; and

(ii) for the ancillary purpose of maintaining or enhancing the value of the money or property pending completion of the matter or further stages of the matter or pending payment or delivery of the money or property to or at the direction of the client.

(4)  In this section –

Australian financial services licence , " authorised representative " , " financial service " and " financial services business " have the same meanings as in Chapter 7 of the Corporations Act 2001 of the Commonwealth.