Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For paragraph 766E (3) (e) of the Act, conduct that is mentioned in subsection 766E (1) of the Act does not constitute providing a custodial or depository service if:
(a) the financial product held by the provider is a basic deposit product (within the definition in section 761A of the Act) or is an account mentioned in subsection 981B (1) of the Act; or
(b) the client is an associate of the provider (within the meaning of Division 2 of Part 1.2 of the Act); or
(c) the provider and its associates have no more than 20 clients in aggregate for all custodial or depository services that they provide; or
(d) the financial product is held as part of the arrangements for securing obligations under:
(i) a credit facility; or
(ii) a debenture that is held as trustee under a trust deed:
(A) entered into under section 283AA of the Act or former section 260FA of the Corporations Law of a State or Territory; or
(B) mentioned in former section 1052 of the Corporations Law of a State or Territory; or
(e) the provider is a participant in a licensed market and the financial product held is a derivative acquired on the licensed market by the provider on behalf of a client; or
(f) the provider is a participant in a licensed clearing and settlement facility and the financial product held is a derivative registered on the licensed clearing and settlement facility by the provider on behalf of the client; or
(g) the financial product is held under:
(i) an order of a court; or
(ii) an order of a board or tribunal established under a law of a State or Territory; or
(iii) a direction by the holder of a statutory office established under a law of a State or Territory; or
(h) the service is provided by a lawyer in the following circumstances:
(i) the financial service consists of acquiring, holding or disposing of a cash management trust interest, being an interest to which a law of a State or Territory relating to the audit of trust or controlled monies applies;
(ii) the lawyer is acting:
(A) on instructions from the client, an associate of the client or a relative of the client; and
(B) in his or her professional capacity; and
(C) in the ordinary course of his or her activities as a lawyer;
(iii) the financial service can reasonably be regarded as a necessary part of those activities;
(iv) the lawyer has not received, and will not receive, a benefit in connection with the activities other than:
(A) the payment of professional charges related to those activities; and
(B) reimbursement for expenses incurred or payment on account of expenses to be incurred on behalf of the client, an associate of the client or a relative of the client;
from the client or from another person on behalf of the client; or
(i) the financial product is held by a trustee appointed under:
(i) a law of a State or Territory to administer monies awarded to a person as compensation; or
(ii) a trust formed for a charitable purpose.
(2) For paragraph 766E (3) (e) of the Act, conduct that is mentioned in subsection 766E (1) of the Act does not constitute providing a custodial or depository service if the financial product is an Australian carbon credit unit that has been issued to:
(a) a special native title account in accordance with section 49 of the Carbon Credits (Carbon Farming Initiative) Act 2011 ; or
(b) a nominee account in accordance with section 141 of that Act.
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