Section 981D — Corporations Act 2001 (Cth)

(1) Despite anything in regulations made for the purposes of section 981C, if:

(a) the financial service referred to in subparagraph 981A(1)(a)(i) is or relates to a dealing in a derivative; or

(b) the financial product referred to in subparagraph 981A(1)(a)(ii) is a derivative;

the money concerned may also be used for the purpose of meeting obligations incurred by the licensee in connection with margining, guaranteeing, securing, transferring, adjusting or settling dealings in derivatives by the licensee (including dealings on behalf of people other than the client).

(2) However, if the money is derivative retail client money, subsection (1) only applies to an obligation if:

(a) the entry into of the derivative referred to in paragraph (1)(a) or (b) was or will be cleared through an authorised clearing and settlement facility; and

(b) the licensee incurred the obligation, in connection with the derivative, under the operating rules of the facility.

Related sections

• s 981A — Money to which Subdivision applies
• s 981B — Obligation to pay money into an account
• s 981C — Regulations may deal with various matters relating to accounts maintained for the purposes of section 981B
• s 981E — Protection of money from attachment etc.
• s 981F — Regulations may deal with how money to be dealt with if licensee ceases to be licensed etc.
• s 981G — Account provider not liable merely because of licensee’s contravention

Research how courts apply s 981D

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.