The statutory trust under s 981H of the Corporations Act 2001 (Cth) protects client monies received by a financial services licensee pending application to an authorised purpose, but does not extend to monies once paid to counterparties for the authorised purpose of hedging under s 981D. However, when funds are returned by counterparties, they are received 'on behalf of' clients within the wider meaning of s 981A(1)(b)(iii) and re-enter the statutory trust regime. No Quistclose trust arises over recoveries from counterparties where the authorised hedging purpose was performed rather than frustrated. Client segregated accounts may be pooled across product lines in a winding up.
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