Commonwealth Numbered Regulations Commonwealth Numbered Regulations
1 At the end of paragraphs 7.8.02(1)(a) and (c)
Add "(subject to regulation 7.8.02A)".
2 After regulation 7.8.02
Insert:
(1) Paragraph 7.8.02(1)(a) does not apply to a written direction to the extent the direction allows the financial services licensee to use derivative retail client money as mentioned in subregulation (3) of this regulation.
(2) Paragraph 7.8.02(1)(c) does not apply to an entitlement of the financial services licensee to use derivative retail client money as mentioned in subregulation (3) of this regulation.
(3) Subregulations (1) and (2) apply to using the money:
(a) as the licensee's capital, including working capital; or
(b) for the purpose of meeting obligations incurred by the licensee other than on behalf of the client; or
(c) for the purpose of entering into, or meeting obligations under, transactions that the licensee enters into to hedge, counteract or offset the risk to the licensee associated with a transaction between the licensee and the client.
3 In the appropriate position in Chapter 10
Insert:
10.26.01 Application of regulation 7.8.02A
(1) Subregulation 7.8.02A(1), as inserted by the Corporations Amendment (Client Money) Regulations 2017 , applies in relation to payments made, on or after the commencement of this regulation, out of an account maintained for the purposes of section 981B of the Act, whether the relevant written direction was given before, on or after that commencement.
(2) Subregulation 7.8.02A(2), as inserted by the Corporations Amendment (Client Money) Regulations 2017 , applies in relation to payments made, on or after the commencement of this regulation, out of an account maintained for the purposes of section 981B of the Act, whether the relevant entitlement was created before, on or after that commencement.