The Corporations Point-in-Time Service has been updated to include the Corporations Amendment (National Guarantee Fund Payments) Regulations 2019 (Cth).
Under the Corporations Act 2001 (Cth), operators of financial markets must have an eligible compensation scheme to protect investors. The National Guarantee Fund (NGF) is a compensation scheme that applies to members of the Securities Exchanges Guarantee Corporation. The NGF provides compensation for retail and wholesale clients who incur a loss in their dealings with participants in four circumstances, as set out in the Corporations Regulation 2001 (Cth).
Currently only claims relating to an insolvent participant are capped, with the three other circumstances uncapped. This means that the NGF could be depleted by one or more large claims. To ensure the sustainability of the NGF, this Regulation proposes to make three changes to the existing regime:
These amendments have been updated in the Point-in-Time Corporations Service current to 19 November 2019. (NB: subscription required).
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