{"id":"F2007B00626","name":"ASIC Class Order [CO 03/1112]","slug":"asic-class-order-co-03-1112","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":62414,"registerId":"commonwealth-F2007B00626-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Class Order [CO 03/1112]","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 20.2\ntitle: Australian Securities and Investments Commission\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\nAustralian Securities and Investments Commission\n\nCorporations Act 2001 — Paragraphs 992B(1)(a) and 992B(1)(c) — Exemption and Declaration\n\n \n\n1. Under paragraph 992B(1)(a) of the Corporations Act 2001 (the “Act”) the Australian Securities and Investments Commission (“ASIC”) exempts each person (the “licensee”) who is an Australian ADI from paragraph 981B(1)(c) of the Act in the case referred to in the Schedule to the extent that that paragraph requires the licensee to hold money to which Subdivision A of Division 2 of Part 7.8 of the Act applies on trust for the benefit of the person who is entitled to the money.\n\n \n\n2. Under paragraph 992B(1)(c) of the Act ASIC declares that Part 7.8 of the Act applies in relation to the licensee in the case referred to in the Schedule as if section 981H of the Act were omitted.\n\n \n\n## Schedule\n\n \n\nWhere:\n\n(a) money to which Subdivision A of Division 2 of Part 7.8 of the Act applies is paid to the licensee in connection with:\n\n(i) a financial service that has been provided, or that will or may be provided, to a person (the “client”) as a wholesale client; or\n\n(ii) a financial product acquired by a person (the “client”) as a wholesale client; and\n\n(b) the licensee and the client have agreed in writing that the licensee does not hold the money on trust for the benefit of the client.\n\n \n\n# Interpretation\n\n \n\nIn this instrument “wholesale client” has the meaning given by subsection 761G(4) of the Act.\n\n \n\n \n\nDated this 16th day of December 2003\n\n \n\n \n\n \n\n \n\nSigned by Brendan Byrne\n\nas a delegate of the Australian Securities and Investments Commission\n\n \n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-batch","completionTokens":2131},"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This 2003 instrument maintains its original targeted scope, providing a discrete exemption for ADIs when dealing with wholesale clients under specific contractual conditions."},"complexity_factors":["Short, single-purpose instrument with only two operative provisions","Relies on external definitions from Corporations Act (ADI, wholesale client)","Simple cumulative conditional structure (two 'and' requirements in Schedule)","Minimal cross-referencing limited to specific section numbers of the Act"],"plain_english_summary":"This rule lets Australian banks (ADIs) contract out of the usual legal requirement to hold client money in a protected trust when dealing with wholesale (sophisticated) clients, provided there’s a written agreement saying the bank does not hold the funds on trust. It also removes a provision that would otherwise void such agreements, making them legally effective.\n\nIt affects ADIs and wholesale clients by stripping statutory client-money protection in those cases, reducing regulatory burdens for large, negotiated commercial transactions."}},"importantCases":[],"_links":{"self":"/api/acts/asic-class-order-co-03-1112","history":"/api/acts/asic-class-order-co-03-1112/history","analysis":"/api/acts/asic-class-order-co-03-1112/analysis","conflicts":"/api/acts/asic-class-order-co-03-1112/conflicts","importantCases":"/api/acts/asic-class-order-co-03-1112/important-cases","documents":"/api/acts/asic-class-order-co-03-1112/documents"}}