Money
in trust
account not
available for pay: ment of
debts, etc.
Claims and Tiens dot affected.
Dealer Lo appoint audior.
72
(4) All sums derived by way of interest from the payment of money by a dealer into a trust account under this section shall, subject to any agreement to the contrary, belong to the person to whom the dealer is accountable.
(5) No amount other than an amount referred to in para- graph (a) or (b) of subsection (1) shall be paid into a trust account,
(6) Every dealer shall keep records of-
(a) all amounts paid into a trust account kept by him. specifying the persons on whose behalf the amounts are held and the dates on which they were paid into the account;
(b) all withdrawals from the trust account, the dates of those withdrawals, and the names of the persons on whose behalf the withdrawals are made; and
(c) such other particulars (if any) as may be prescribed by
regulations.
(7) A person who...
(a) without reasonable excuse, contravenes any provision of this section shall be guilty of an offence and shall be liable on conviction to a fine of $10,000; or
(B) with intent to defraud, contravenes any provision of this section shall be guilty of an offence and shall be lable on conviction on indictment to a fine of $50,000 and to imprisonment for 5 years.
85. (1) Except as otherwise provided in this Part. money held in a trust account shall not be available for payment of the debts of a dealer or be liable to be paid or taken in execution under the order or process of any court of competent jurisdiction.
(2) Any payment made in contravention of subsection (1) shall be void ab initio, and no person to whom the money is paid shall obtain any title to it.
86. Nothing in this Purt shall be construed as taking away or affecting any lawful claim or lien which any person has in respect of any money held in a trust account or in respect of any money received for the purchase of securities or from the sale of securities before the money is paid into a trust account.
87, (1) A dealer shall appoint an auditor to audit his ac- counts (including all trust accounts required to be kept by the
73
dealer under section 84) and, where for any reason the auditor ceases to act for the dealer, the dealer shall, as soon as practic- able thereafter, appoint another auditor to replace him.
(2) A person is not eligible for appointment under subsec- tion (1) i
(a) he is a servant of the dealer or is in the employment of
any such servant;
(6) where the dealer is a partnership, he is a member of the partnership or in the employment of any such member:
(c) where the dealer is a corporation, he is an officer of the corporation or is in the employment of any such officer: or
(d) he belongs to any other class of persons prescribed in
regulations for the purposes of this paragraph.
#8. (1) A dealer shall, in respect of the financial year begin- ning before and ending after--
(a) the day on which this section commences; or
(b) the day on which the dealer commences to carry on
business as a dealer,
whichever is the later day, and in respect of each subsequent fin- ancial year, prepare a true and fair profit and loss account and a balance sheet made up to the last day of the financial year and cause those documents to be lodged with the Commissioner not later than the 31st day of July next following the end of the fin- ancial year, together with an auditor's report containing the information prescribed by regulations.
(2) Notwithstanding subsection (1), the period within which the documents referred to in subsection (1) are required to be lodged may be extended by the Commissioner for a period ant exceeding one month, where an application for the extension is made by the dealer and the Commissioner is satisfied there are special reasons for requiring the extension.
(3) An extension under subsection (2) may be allowed sub- ject to such conditions, if any, as the Commissioner thinks fit to impose.
(4) Any dealer who fails to lodge the documents required by this section with the Commissioner within the time allowed by or under this section shall be guilty of an offence and shall be liable on conviction to a fine of $5,000.
Dealer to lodg= auditor's report,