Practice Note CM 10

PA Keane, Chief Justice 01 August 2011

This Practice Note is REVOKED

On 25 October 2016, as part of the National Court Framework reforms, all existing practice documents were revoked and new national practice notes were issued, effective immediately.

To assist Court users to understand these practice note changes, the Court has prepared:

Investment accounts under Rule 2.42 of the Federal Court Rules 2011

RTF version (57.8 kb)

1.  Money that is to be invested by the Registrar pursuant to an order under Rule 2.42 of the Federal Court Rules 2011 must be invested in accordance with the Financial Management and Accountability Act 1997 (Cth) (‘the Act’) which prescribes the types of investments that may be made. The investments allowed under the Act are:

(a)  securities of the Commonwealth or of a State or Territory;

(b)  securities guaranteed by the Commonwealth, a State or a Territory;

(c)  a deposit with a bank, including a deposit evidenced by a certificate of deposit;

(d)  any other form of investment prescribed by the regulations.

2.  Under the Financial Management and Accountability Regulations 1997 the authorised investments are:

(a)  a bill of exchange accepted or endorsed only by a bank;

(b)  a professionally managed money market trust if the Finance Minister or the Treasurer is satisfied that:

(i)  the only investments managed by the trust are mentioned in subparagraph (a) (i), (ii) or (iii), or (b) (i), (ii) or (iii), of the definition of authorised investment in subsection 39 (10) of the Act, or in paragraph (a); and

(ii)  a charge over trust assets does not support any borrowings by the trust;

(c)  a dematerialised security that is the equivalent of an investment mentioned in subparagraph (a) (iii) or (b) (iii) of the definition of authorised investment in subsection 39 (10) of the Act;

(d)  a dematerialised security that is the equivalent of an investment mentioned in paragraph (a).

3.  For the purpose of paragraphs 2 (c) and (d) above:

dematerialised security means a debt obligation that is registered on Austraclear.
Note   The Austraclear system is operated in accordance with the Austraclear Regulations of Austraclear Limited. In mid‑2008, this was available on the internet at:
http://www.asx.com.au/supervision/pdf/sfe_operating_rules/austraclear_system_regulations.pdf

4.  An investment account opened by the Registrar must, in accordance with the Act, include in its title the words “Federal Court of Australia Official Exempt SPM Litigants’ Fund (insert proceeding file number and title)”.