Document ID: chunk:federal_register_of_legislation:F2012L02230:body:0:p3
Version: federal_register_of_legislation:F2012L02230
Segment Type: other
Provision Reference: 
Character Range: 5541–8740

development and maintenance of the RSE licensee's conflicts management framework.

    11.         The Board must take all reasonable steps to ensure that all responsible persons and other employees of the RSE licensee clearly understand:

       (a)          the need to identify all potential conflicts;

       (b)          the circumstances that might give rise to a conflict;

       (c)          the content and purpose of the RSE licensee's conflict management framework; and

       (d)          their obligations, where applicable, as a responsible person of the RSE licensee.

    12.         The Board must have in place appointment procedures that require incoming responsible persons to disclose all relevant duties and relevant interests prior to the person taking up the appointment.

RSE licensees that are part of a group[5]
    13.         Where an RSE licensee is part of a corporate group, and the RSE licensee utilises group policies or functions, the Board must approve the use of group policies and functions and must ensure that these policies and functions give appropriate regard to the RSE licensee's business operations and its specific requirements.

Conflicts management framework
    14.         An RSE licensee's conflicts management framework must be appropriate to the size, business mix and complexity of the RSE licensee's business operations.

    15.         An RSE licensee's conflicts management framework must provide reasonable assurance that all conflicts are being clearly identified, avoided or prudently managed and must, at a minimum, include:

       (a)          a conflicts management policy, approved by the Board, that meets the requirements of this Prudential Standard;

       (b)          clearly defined roles, responsibilities and resources for the oversight of conflicts management within the RSE licensee's business operations;

       (c)          an up-to-date register of relevant duties; and

       (d)          an up-to-date register of relevant interests.

    16.         An RSE licensee's conflicts management framework must include a process that outlines how the RSE licensee determines a duty or an interest to be relevant for the purposes of this Prudential Standard. A relevant duty or a relevant interest is one that might reasonably be considered to have the potential to have a significant impact on the capacity of the RSE licensee, the associate of the RSE licensee or the responsible person with the relevant duty or holding the relevant interest, to act in a manner that is consistent with the best interests of beneficiaries.

    17.         An RSE licensee must have procedures to ensure that all its relevant business units are made aware of, and have processes and controls for monitoring compliance with, the RSE licensee's conflicts management framework.

Conflicts management policy
    18.         An RSE licensee must have a conflicts management policy that is approved by the Board. At a minimum, the conflicts management policy must include controls and processes applying to all responsible persons and all employees of the RSE licensee for:

       (a)          identifying and monitoring