Section 981H — Corporations Act 2001 (Cth)

(1) Subject to subsection (3), money to which this Subdivision applies that is paid to the licensee:

(a) by the client; or

(b) by a person acting on behalf of the client; or

(c) in the licensee’s capacity as a person acting on behalf of the client;

is taken to be held in trust by the licensee for the benefit of the client.

(3) The regulations may:

(a) provide that subsection (1) does not apply in relation to money in specified circumstances; and

(b) provide for matters relating to the taking of money to be held in trust (including, for example, terms on which the money is taken to be held in trust and circumstances in which it is no longer taken to be held in trust).

Related sections

• 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
• s 981J — Client money reporting rules
• s 981K — Matters that may be dealt with in client money reporting rules
• s 981L — ASIC to consult before making rules

Research how courts apply s 981H

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