Commonwealth legislation

ASIC Class Order [CO 04/1063]

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

3/10 complexity

This order changes where financial services licensees (people like stockbrokers and advisers) can hold client money (cash that belongs to their clients).

Normally, the law requires client money to be held in a bank. This order creates an extra option: licensees can deposit the money with an authorised trustee corporation (a specially approved type of company that manages investments), but only if:

The money is being used to buy an interest in a specific type of investment fund operated by that corporation; and
That fund is what's commonly known as a cash common fund (a pooled cash management scheme, similar to a high-interest cash account).

Why this matters: It allows licensees to pool client cash into these cash common funds as an alternative to standard bank deposits, giving clients potentially better interest rates while maintaining regulatory protections.

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Current sections

Direct links to the current provisions in ASIC Class Order [CO 04/1063].

ASIC Class Order [CO 04/1063]

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Australian Securities and Investments Commission Corporations Act 2001 — Paragraph 992B(1)(c) — Declaration

Under paragraph 992B(1)(c) of the Corporations Act 2001 (the Act) the Australian Securities and Investments Commission declares that Part 7.8 of the Act applies in relation to a financial services licensee as if section 981B of the Act were modified or varied by adding after subparagraph (1)(a)(i):

“(ia) with an authorised trustee corporation and relates to an interest in a registered scheme operated by that corporation of the kind commonly known as a cash common fund; or”.

Dated this 27th day of August 2004

Signed by Brendan Byrne as a delegate of the Australian Securities and Investments Commission

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