Obligation for credit service licensees to maintain trust account
98 Obligation for credit service licensees to maintain trust account
Requirement to maintain trust account
The credit service licensee must maintain one more trust accounts (the trust account) in accordance with this section.
Civil penalty: 5,000 penalty units.
Requirements for trust accounts
The trust account must be maintained with an Australian ADI (within the meaning of section 9 of the Corporations Act 2001).
The trust account must be designated as the credit service licensee’s trust account.
Offence
The credit service licensee commits an offence if:
the credit service licensee is subject to a requirement under subsection (1); and
the credit service licensee engages in conduct; and
the conduct contravenes the requirement.
Criminal penalty: 6 months imprisonment.
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