258Prohibited services and business

258 Prohibited services and business

258 Prohibited services and business

(1) A law practice (or a related entity) must not—

(a) promote or operate a managed investment scheme; or

(b) provide a service or conduct a business of a kind specified in the Uniform Rules for the purposes of this section.

Civil penalty: 250 penalty units.

(1A) Despite subsection (1), a law practice (or a related entity) may promote or operate a managed investment scheme if—

(a) the scheme is connected with or related to the business structure or ownership of the law practice; or

(b) the scheme is connected with or related to the operation of the law practice and no person who is not an associate of the law practice has an interest in—

(i) the scheme; or

(ii) the responsible entity for the scheme; or

(c) the scheme is of a kind specified in the Uniform Rules for the purposes of this paragraph.

(2) Despite subsection (1), an associate of a law practice may promote or operate a managed investment scheme if, in the event of an insolvency or administration of the managed investment scheme, the associate is appointed as—

(a) an administrator, liquidator, receiver, receiver and manager, agent of a mortgagee or controller of the managed investment scheme in respect of the insolvency or administration; or

(b) a controller or external administrator of an entity acting in a similar capacity as a responsible entity where a managed investment scheme does not have a responsible entity in respect of an insolvency or administration.

(3) Except as permitted by or under the Uniform Rules, or as approved by the designated local regulatory authority, a law practice must not provide legal services in relation to a managed investment scheme if any associate of the law practice has an interest in the scheme or the responsible entity for the scheme.

Civil penalty: 250 penalty units.

(4) A law practice (or a related entity) must not, in its capacity as the legal representative of a lender or contributor, negotiate the making of or act in respect of a mortgage, other than—