LEGAL PROFESSION ACT 2006 - SECT 212 Money involved in financial services or investments
LEGAL PROFESSION ACT 2006 - SECT 212
Money involved in financial services or investments(1) Money that is entrusted to or held by a law practice is not trust money for this Act if it is entrusted or held for or in relation to—
(a) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate is required to hold an Australian financial services licence covering the provision of the service (whether or not the licence is held at any relevant time); or
(b) a financial service provided by the practice or an associate of the practice in circumstances where the practice or associate provides the service as a representative of someone else who carries on a financial services business (whether or not the practice or associate is an authorised representative at any relevant time).
(2) Without limiting subsection (1), money that is entrusted to or held by a law practice is not trust money for this Act if it is entrusted or held in relation to—
(a) a managed investment scheme undertaken by the practice; or
(b) mortgage financing undertaken by the practice.
(3) Without limiting subsections (1) and (2), money that is entrusted to or held by a law practice for investment purposes, whether on its own account or as agent, is not trust money for this Act, unless—
(a) the money was entrusted to or held by the practice—
(i) in the ordinary course of legal practice; and
(ii) primarily in relation to the provision of legal services to or at the direction of the client; and
(b) the investment is or is to be made—
(i) in the ordinary course of legal practice; and
(ii) for the ancillary purpose of maintaining or enhancing the value of the money or property pending completion of the matter or further stages of the matter or pending payment or delivery of the money or property to or at the direction of the client.
(4) In this section:
"Australian financial services licence"—see the Corporations Act
, section 761A.
"authorised representative"—see the Corporations Act
, section 761A.
"financial service"—see the Corporations Act
, section 761A.
"financial services business"—see the Corporations Act
, section 761A.