Document ID: chunk:federal_register_of_legislation:F2024L00374:body:0:p5
Version: federal_register_of_legislation:F2024L00374
Segment Type: other
Provision Reference: 
Character Range: 10343–13139

things necessary to ensure that any custodian or sub-custodian keeps such records in relation to any property or asset that the custodian holds or that is held by the sub-custodian.
(10) The responsible entity must set out in writing and implement a reasonable process for determining if it should hold scheme property or assets or engage a custodian and if it is to engage a custodian which person will be the custodian and on what terms. The process must involve the application of a reasonable written policy approved by the directors which addresses potential conflicts of interest and any other considerations relevant to the best interests of members.
(11) The responsible entity must:
(a) review the appropriateness of the written policies and processes it is required to have or do all things necessary to ensure exist under subsection (7), (8) and (10) at least once in every 13 months; and
(b) as directed by ASIC in writing, arrange for a report on the effectiveness of or the reasonableness of any of the processes or policies to be prepared and given to ASIC.
The written direction may specify who is to prepare the report and the time by which it must be given to ASIC.
(12) A responsible entity that complies with this section is taken to comply with conditions (if any) of its Australian financial services licence to the extent that the conditions:
                  (a) refer to ASIC Policy Statement 133 or ASIC Regulatory Guide 133 as applying on a certain date; and
                  (b) are not conditions that apply to the responsible entity because it is a trustee company.
(13) In this section and section 601FCAB:
custodian means a person engaged by the responsible entity to hold scheme property or assets on behalf of the responsible entity.
custodial staff means natural persons who, whether under an arrangement with the responsible entity or a custodian, have duties relating to holding scheme property or assets, record keeping relating to scheme property or assets, checking authorisations for instructions to transact or functions incidental to these functions other than making investment decisions, trading decisions or other discretionary decisions resulting in the transfer or disposal of scheme property or assets other than discretionary decisions in relation to holding a deposit account with a corporation that is regulated for the taking of deposits where the balance of the deposit account is payable on demand and discretionary decisions relating to buying or selling foreign currency.
sub-custodian means a person directly or indirectly engaged by a custodian to hold scheme property or assets.
(14) For the purposes of this section and section 601FCAB:
(a) a person (first person) engages another person if the first person engages or authorises the