Commonwealth Numbered Regulations Commonwealth Numbered Regulations
1 Before regulation 7.8.01
Insert:
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.
2 After regulation 7.8.06A
Insert:
7.8.06B Wholesale client property
For the purposes of paragraph 984A(2)(a) of the Act, property given as mentioned in subsection 984A(1) of the Act is exempt from Division 3 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 property being dealt with other than in accordance with that Division; and
Note 1: It is not necessary for the agreement to mention that Division explicitly.
Note 2: If the licensee obtains the agreement after the property is given, that Division ceases to apply to the property when the licensee obtains the agreement.
(b) either:
(i) the financial service referred to in subparagraph 984A(1)(a)(i) of the Act is or relates to a dealing in a derivative; or
(ii) the financial product referred to in subparagraph 984A(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 property was given; and
(ii) section 761GA of the Act (about sophisticated investors) did not apply.
3 In the appropriate position in Chapter 10
Insert:
10.24.01 Application of regulations 7.8.01A and 7.8.06B
(1) Regulation 7.8.01A, as inserted by the Financial Services Legislation Amendment (Wholesale Margining) Regulation 2016 , applies in relation to a client's written agreement obtained on or after the commencement of this regulation, whether the money was paid to the licensee as mentioned in subsection 981A(1) of the Act before, on or after that commencement.
(2) Regulation 7.8.06B, as inserted by the Financial Services Legislation Amendment (Wholesale Margining) Regulation 2016 , applies in relation to a client's written agreement obtained on or after the commencement of this regulation, whether the property was given to the licensee as mentioned in subsection 984A(1) of the Act before, on or after that commencement.