This page describes how Probis Financial Services Limited (Probis) handles client money.

Generally, when you transfer money (usually it is called margin payment) to Probis for the purposes of trading OTC derivative contracts issued by Probis, those monies we receive from you are called “client money”.

There are laws around how and when Probis can use the client money in order to protect your money.

Under s 981B of the Corporations Act (Act), licensees such as Probis must ensure that the client money it receives is paid into a bank account with an Australian ADI on the day the licensee receives the money or on the next business day. Such bank account must be designated as Client Money Trust Account. This requirement applies irrespective of whether the client is a retail client or wholesale client.

Retail and wholesale Clients

Under s 761G of the Act, a financial product or a financial service is provided to, or acquired by a person as a retail client unless s 761G(7) [The only subsection that is relevant to Probis’ business], or s 761GA, provides otherwise.


Subsection 761G(7) relevantly provides that a product or service [such as those products and services provided by Probis] is provided to the person as a retail client unless one or more of the following paragraphs apply:

(a)
the price for the provision of the financial product, or the value of the financial product to which the financial service relates, equals or exceeds the amount specified in regulations made for the purposes of this paragraph as being applicable in the circumstances; or
(b)
the financial product, or the financial service, is provided for use in connection with a business that is not a small business [meaning a business employing less than 20 people if the business is not the manufacture of goods]
(c)
the financial product, or the financial service, is not provided for use in connection with a business, and the person who acquires the product or service gives the provider of the product or service, before the provision of the product or service, a copy of a certificate given within the preceding 6 months by a qualified accountant that states that the person:
(i)
has net assets of at least the amount specified in regulations made for the purposes of this subparagraph; or
(ii)
has a gross income for each of the last 2 financial years of at least the amount specified in regulations made for the purposes of this subparagraph a year;
(d)
the person is a professional investor.

Reg 7.1.22A of the Corporations Regulations 2001 (Regulations) provides that s 761G(7)(a) does not apply to the value of a derivative that is a contract for difference [i.e. the OTC Derivative Contracts that Probis issues to you].

Reg 7.1.28 of the Regulations provides that for subparagraph 761G(7)(c)(i) of the Act, $2.5 million is specified; for subparagraph 761G(7)(c)(ii) of the Act, $250,000 is specified.

Section 761GA of the Act provides a definition of sophisticated investors [Note that Probis does not classify any client as wholesale client under s 761GA].

Section 9 of the Act defines “professional investor” to mean a person in relation to whom one or more of the following paragraphs apply [Only relevant subsections are listed below].

(a)
the person is a financial services licensee;
(e)
the person controls at least $10 million (including any amount held by an associate or under a trust that the person manages);
(f)
the person is a listed entity, or a related body corporate of a listed entity;
(i)
the person is a foreign entity that, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.

In summary, when trading with Probis, you will be classified by a retail client unless you:

  • are a professional investor; or
  • are not a small business and the products or services provided by Probis are for use in connection with your business; or
  • have a certificate issued by a qualified accountant within 6 months to certify that you have at least $ 2.5 million or have a gross income for each of the last 2 financial years of $ 250,000, and the products or services provided by Probis are not for use in connection with a business.
Derivative Retail Client Money

ASIC Client Money Reporting Rules 2017 came into effect on 8 April 2018 which significantly restricts the circumstances in which an AFS licensee may use ‘derivative retail client money’.

Section 761A of the Act provides that money paid in connection with a financial service or financial product is “derivative retail client money” if the financial service is or relates to a dealing in a derivative or the financial product is a derivative, and the financial service or product is provided to a retail client or a sophisticated client who would be a retail client if s 761GA did not apply.

What it means is that under those rules, if you are classified as a retail client or would be a retail client if s 761GA did not apply, Probis must not use or withdraw any money transferred by you or by Probis on behalf of you from Client Money Trust Account for any purposes except in certain circumstances, such as withdrawals for realised/unrealised losses on your account as a result of mark-to-market valuation, or for fees and charges that Probis is entitled to.

In addition, in compliance with the ASIC Client Money Reporting Rules, Probis has imposed procedures and policies on client money reconciliation, record keeping and reporting. Daily reconciliations are being performed by qualified personnel and a monthly client money reconciliation and reporting must be submitted by Probis to ASIC within 10 business days.

Probis does not classify any client as wholesale client under s 761GA, thus, if you are classified as a retail client, those additional client money protections will be available to you.

However, if you are NOT a retail client, different client money protections may apply to you.

If you are classified as a wholesale client by reasons other than s 761GA, Reg 7.8.02 of the Regulation and ss 981C and 981D provide that Probis may use or withdraw your money from the Client Money Trust Account for the purpose of meeting its margining obligations or for other purposes in accordance with your written direction.

The client money protection offered by Probis to wholesale clients significantly depends on the amount of money that you have transferred to Probis.

Standard Wholesale Client

If you are classified as a wholesale client by reasons other than s 761GA and the total amount of your money with Probis is less than AUD 250,000 [Standard Wholesale Client], Probis will treat your money as if it were “derivative retail client money” and Probis will not use or withdraw any money transferred by you or by Probis on behalf of you from Client Money Trust Account for any purposes except where the withdrawal is for realised/unrealised losses on your account as a result of mark-to-market valuation or for fees and charges that Probis is entitled to.

What this means is that you will enjoy the same client money protection as a retail client.

If there is insufficient space for including the full account name when remitting funds to us, please abbreviate it as PFSL CMTA.

AUD Deposits:

Bank Name Commonwealth Bank of Australia
Bank Address 48 Martin Place Sydney, NSW 2000
Country of Bank Australia
SWIFT Code CTBAAU2S
Branch Code/BSB 062 000
Beneficiary Account No. 1922 4959
Beneficiary Name: Probis Financial Services Limited Client Money Trust Account
Beneficiary Address Level 11, 227 Elizabeth Street, Sydney NSW 2000 Australia

USD Deposits:

Bank Name Commonwealth Bank of Australia
Bank Address 48 Martin Place Sydney, NSW 2000
Country of Bank Australia
SWIFT Code CTBAAU2S
Branch Code/BSB 062 000
Beneficiary Account No. 1922 4975
Beneficiary Name: Probis Financial Services Limited Client Money Trust Account
Beneficiary Address Level 11, 227 Elizabeth Street, Sydney NSW 2000 Australia
Significant Wholesale Client

If you are classified as a wholesale client by reasons other than s 761GA and the total amount of your money with Probis is greater than AUD 250,000[Significant Wholesale Client], you MUST agree to and tick the following section on the Account Opening Form, otherwise Probis will not accept you as a client, which is at Probis’ sole discretion.

I/We have confirmed wholesale client status, and have understood and agreed to, under Reg 7.8.01A Corporations Regulations 2001, the money being dealt with other than in accordance with Subdivision A of Division 2 of Part 7.8 of the Corporations Act 2001
(DO NOT cross if you do not qualify for a wholesale client, e.g. you are a retail client)

Reg 7.8.01A of the Regulation provides that money paid by a client is exempt from client money provisions in the Act if the licensee has the client written agreement to the money being otherwise dealt with, and the money is paid in connection with an over-the-counter derivative by a wholesale client.

What it means to you is that once you have given your consent by ticking the box on the Account Opening Form, the client money protection provisions will not apply to you and Probis can use your money for any lawful purposes.

However, as a general rule, Probis will not use your money as its working capital or other purposes other than meeting its own margining obligations in connection with hedging with liquidity providers for the positions entered into with its clients. Your money will generally be separated from Probis’ own funds.

If you agree to become a Significant Wholesale Client, please transfer your money to the following bank accounts:

Note that the EUR and JPY accounts are located in Japan to avoid negative interest charges by banks in Australia.

USD Deposits

Bank Name National Australia Bank Limited
Bank Address 292 Pitt Street, Sydney NSW 2000
Country of Bank Australia
SWIFT Code NATAAU3303M
Branch Code/BSB 082-080
Beneficiary Account No. PROBFUSD03
Beneficiary Name: Probis Financial Services Limited
Beneficiary Address Level 11, 227 Elizabeth Street, Sydney 2000, Australia

EUR and JPY Deposits

Bank Name Sumitomo Mitsui Banking Corporation
Bank Address Ikebukuro Branch
1-21-7 Nishi-ikebukuro, Toshima-ku, Tokyo, Japan.
Country of Bank Japan
SWIFT Code SMBCJPJT
Branch Code/BSB 0009-225
Beneficiary Account No.
201 6181 For EUR Transfer
355 6427 For JPY Transfer
Beneficiary Name: Probis Financial Services Limited
Beneficiary Address 2F.,Sagami Building, 7-13-6 Ginza,Chuo-Ku, Tokyo
104-0061, Japan
go-to-top