Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 26

Short-term dealing account of registered short-term money market operator

26. Short-term dealing account of registered short-term money market operator



(1) Any person who is a registered short-term money market operator and-

   (a)  is not a registered financial institution; or

   (b)  is a registered financial institution by reason only that he is a
        credit provider-

may make application in the prescribed form and manner to the Commissioner for
approval of an account kept in the name of the operator by a bank that is a
registered financial institution as a short-term dealing account for the
purposes of this Act.

(2) Where an application is made under subsection (1), the Commissioner may
issue to the applicant a certificate of approval of the account as a
short-term dealing account for the purposes of this Act.

(3) Where a certificate under this section is produced to a bank that is a
registered financial institution, the bank shall designate the account to
which the certificate relates as a short-term dealing account for the purposes
of this Act.

(4) An amount shall not be paid to the credit of a short-term dealing account
kept by a bank in the name of a registered short-term money market operator
unless the amount-

   (a)  is an amount received by that operator in the course of short-term
        dealings; or

   (b)  is an amount paid to that account from another account kept in
        Victoria or a prescribed State by that bank or by another registered
        financial institution in the name of that operator.





(5) An amount must not be paid to the debit of a short-term dealing account
kept by a bank in the name of a registered short-term money market operator
unless the amount is-

   (a)  an amount paid to another account kept in Victoria by that bank or
        another registered financial institution in the name of that operator;
        or

   (b)  an amount paid by that operator in the course of short-term dealings;
        or

   (c)  a prescribed amount or an amount included in a class of prescribed
        amounts.

(6) Where-

   (a)  the Commissioner is satisfied that an amount has been paid to the
        credit or debit of a short-term dealing account in contravention of
        subsection (4) or (5); or

   (b)  the Commissioner cancels the registration of the person in whose name
        the account is kept as a short-term money market operator; or

   (ba) the Commissioner is satisfied that the short-term dealing account has
        not been kept in credit at all times-

the Commissioner-

   (c)  may by notice in writing given to the bank at which the short-term
        dealing account is kept cancel the certificate;

   (d)  may determine a period, not exceeding one year, during which the
        person in whose name the account is kept is ineligible to make
        application under this section; and

   (e)  shall send a copy of the notice to the person in whose name the
        account was kept.