FUTURES INDUSTRY ACT 1986 No. 72 of 1986 - SECT 101
Power of Court to restrain dealings with futures broker's accounts
FUTURES INDUSTRY ACT 1986 No. 72 of 1986 - SECT 101
Power of Court to restrain dealings with futures broker's accounts
101. (1) Where the Court is satisfied, on application by the Commission, or by
a body corporate that is a relevant organisation-
(a) that there are reasonable grounds for believing that there is a
deficiency in a clients' segregated account of a futures broker, or of
a member of the body corporate, as the case may be;
(b) that there has been undue delay, or unreasonable refusal, on the part
of a futures broker, or on the part of a member of the body corporate,
as the case may be, in paying, applying or accounting for money as
required by this Act or by the corresponding law of a participating
State or participating Territory;
(c) that a futures broker, or a member of the body corporate, as the case
may be, has not paid money into a clients' segregated account of the
broker or member as required by this Act or by the corresponding law
of a participating State or participating Territory; or
(d) in a case where a business of dealing in futures contracts
on behalf of others is carried on, was carried on, or was last carried
on, as the case requires, by a person, or by a member of the body
corporate, as the case may be, otherwise than in partnership-
(i) in any case-that the futures broker's licence of that person or
member under Part IV or under the provisions of a law of a
participating State or participating Territory that correspond
with that Part has been revoked or suspended;
(ii) in a case where that person or member is a natural person-that
that person or member is incapable, by reason of physical or
mental incapacity, of managing his or her affairs;
(iii) in any case-that that person or member has ceased to carry on a
business of dealing in futures contracts; or
(iv) in a case where that person or member is a natural person-that
that person or member has died, the Court may make an order
restraining dealings in respect of all or any of the accounts
of that broker, person or member, as the case may be, including
a clients' segregated account of the broker, person or member,
subject to such terms and conditions as the Court imposes.
(2) In sub-section (1)-
"clients' segregated account", in relation to a person, means an account
(whether kept within or outside the Territory) that is, for the purposes of
section 86, or of a provision of a law of a participating State or
participating Territory that corresponds with that section, a clients'
segregated account of the person;
"futures broker" means a person who is or has been a futures broker as defined
in sub-section 4 (1).
(3) Where an application is made to the Court for an order under sub-section
(1), the Court may, if in the opinion of the Court it is desirable to do so,
before considering the application, grant an interim order, being an order of
the kind applied for that is expressed to have effect pending the
determination of the application.
(4) Where the Commission makes an application to the Court for the making of
an order under sub-section (1), the Court shall not require the Commission, as
a condition of granting an interim order under sub-section (3), to give any
undertaking as to damages.