Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 856

856. (1) This section applies where a person (in this section called the

"dealer") holds a licence.

(2) It is a condition of the licence that the dealer shall:

   (a)  keep such accounting records as correctly record and explain the
        transactions and financial position of the securities business carried
        on by the dealer; and
(b) keep those records (in this section called "the records") as provided by
this section.

(3) The records shall be kept in such a way as will enable true and fair
profit and loss accounts and balance sheets to be prepared from time to time.

(4) The records shall be kept in such a way as will enable profit and loss
accounts and balance sheets of the securities business carried on by the
dealer to be conveniently and properly audited.

(5) The records shall be kept in writing in the English language or in such a
manner as will enable them to be readily accessible and readily converted into
writing in the English language.

(6) The records shall be kept in sufficient detail to show particulars of:

   (a)  all money received or paid by the dealer, including money paid to, or
        disbursed from, a trust account;

   (b)  all purchases and sales of securities made by the dealer, the charges
        and credits arising from them, and the names of the buyer and seller
        of each of those securities;

   (c)  all income received from commissions, interest, and other sources, and
        all expenses, commissions, and interest paid, by the dealer;

   (d)  all the assets and liabilities (including contingent liabilities) of
        the dealer;

   (e)  all securities that are the property of the dealer, showing by whom
        the securities, or the documents of title to the securities, are held
        and, where they are held by some other person, whether or not they are
        held as security against loans or advances;

   (f)  all securities that are not the property of the dealer and for which
        the dealer or a nominee controlled by the dealer is accountable,
        showing by whom, and for whom, the securities or the documents of
        title to the securities are held and the extent to which they are
        either held for safe custody or deposited with a third party as
        security for loans or advances made to the dealer;

   (g)  all purchases and sales of options made by the dealer and all fees
        (being option money) arising from them;

   (h)  all arbitrage transactions entered into by the dealer; and

   (j)  all underwriting transactions entered into by the dealer.

(7) The records shall be kept in sufficient detail to show separately
particulars of every transaction by the dealer.

(8) The records shall specify the day on which, or the period during which,
each transaction by the dealer took place.

(9) The records shall contain copies of acknowledgments of the receipt of
securities or of documents of title to securities received by the dealer from
clients for sale or safe custody clearly showing the name or names in which
the particular securities are registered.

(10) The records shall be kept in sufficient detail to show separately
particulars of all transactions by the dealer with, or for the account of:

   (a)  clients of the dealer, excluding, where the dealer carries on business
        in partnership, the partners of the firm;

   (b)  the dealer or, where the dealer carries on business in partnership,
        the partners of the firm;

   (c)  other dealers; and

   (d)  employees of the dealer.

(11) An entry in the records shall, unless the contrary is proved, be deemed
to have been made by, or with the authority of, the dealer.

(12) It is a condition of the licence that where any of the records is not
kept in writing in the English language, the dealer shall, if required to
convert the accounting records concerned into writing in the English language
by a person who is entitled to examine the record, comply with the requirement
within a reasonable time.

(13) The dealer does not contravene a condition existing by virtue of this
section merely because some or all of the records are kept as a part of, or in
conjunction with, the records relating to any other business that is carried
on by the dealer.

(14) It is a condition of the licence that, where any of the records are kept
outside Australia, the dealer shall:

   (a)  cause to be sent to and kept at a place in Australia such particulars
        with respect to the business dealt with in those records as will
        enable true and fair profit and loss accounts and balance sheets to be
        prepared; and

   (b)  if required by the Commission to produce those records at a place in
        Australia, comply with the requirement not later than 28 days after
        the requirement is made.

(15) Nothing in this section limits the generality of anything else in it.