Money deposited as collateral in a margin lending transaction with a dealer that becomes insolvent may be the subject of a claim against the National Guarantee Fund under Regulation 7.5.64, even where the contractual terms provide for absolute transfer of title to the dealer, because statutory trust provisions under s 1017E and s 981H of the Corporations Act 2001 (Cth) may operate to impress the money with a trust. A margin lending facility involving the acquisition and holding of securities with financial entitlements accruing to the client constitutes a 'financial product' for the purposes of s 1017E. Regulation 7.5.64(1) is not limited to situations where a trust exists; the separate reference to money received 'on behalf of' the payer must be given independent effect.
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