73Dealers’ trust accounts

##### 73 Dealers’ trust accounts (1) A dealer shall open and maintain with a bank or banks in the Territory an account or accounts designated as a trust account or as trust accounts. (2) A dealer shall pay into such an account all moneys held by him in trust for a client not later than the next day on which the bank is open for business following the day on which they are received by the dealer. (3) Notwithstanding subsection (1), where moneys that are required by this section to be paid into a trust account are received by a dealer in a place outside the Territory, the dealer may pay those moneys into a trust account maintained by the dealer in that place. (4) For the purposes of subsections (2) and (8), all moneys received by a dealer from a client other than: (a) moneys received in respect of brokerage and other proper charges; (b) moneys received in payment or part payment for securities delivered to the dealer before the moneys are received; or (c) moneys to which section 67 applies; shall be deemed to be held in trust for that client. (5) Subsection (2) does not apply to or in relation to a cheque, bank cheque, bank draft, money order or postal order made payable to or to the order of a specified person or bearer (not being a cheque, bank cheque, bank draft, money order or postal order in which the payee is the dealer, a partner of the dealer or the firm in which the dealer is a partner) received from or on behalf of a client with instructions, express or implied, that the cheque, bank cheque, bank draft, money order or postal order is to be delivered to the person to whom it is payable. (6) A person who contravenes or fails to comply with a provision of this section that is applicable to him is guilty of an offence. Penalty: $5,000 or imprisonment for 1 year, or both. (7) A person who, with intent to defraud, contravenes or fails to comply with a provision of this section that is applicable to him is guilty of an offence. Penalty: $10,000 or imprisonment for 2 years, or both. (8) Where a dealer is prohibited, by virtue of a condition or restriction to which a licence granted to him under this Act is subject, from holding moneys in trust for the dealer’s clients, this section does not apply in relation to the dealer unless and until the dealer holds moneys in trust for a client.