Document ID: chunk:federal_register_of_legislation:F2024L00374:body:0:p3
Version: federal_register_of_legislation:F2024L00374
Segment Type: other
Provision Reference: 
Character Range: 5227–8121

action in the event this happens; and
(e) structures its business so that:
(i) custodial staff can report to the directors of the responsible entity or the compliance committee for the scheme directly or through other custodial staff; and
(ii) the duties of:
(A) direct managers of custodial staff; and
(B) indirect managers of custodial staff that are not the most senior officer of the responsible entity or the most senior officer or employee of the custodian in this jurisdiction or, for a custodian, the jurisdiction in which the custodian is based; and
(C) custodial staff;
do not extend to other functions that may create conflicts of interest including that custodial staff and those managers are not responsible for 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; and
(iii) custodial staff and persons involved in investment decisions, trading decisions or other discretionary decisions resulting in the transfer or disposal of scheme property or assets are located sufficiently separately during the performance of their duties to reduce, so far as reasonably practicable, the risk of inappropriate influence on decisions relating to holding of scheme property and assets.
(3) The responsible entity must, for its custodial staff ensure that, and for custodial staff of any custodian do all things necessary to ensure that the custodian ensures that:
(a) custodial staff have the knowledge and skills necessary to perform their duties properly; and
(b) ongoing training and educational programs are provided to custodial staff that provide reasonable assurance they have knowledge that remains at a level necessary for performing their duties including knowledge of the responsible entity's obligations under this Chapter to the extent relevant to enable the custodial staff to perform their duties; and
(c) custodial staff have the necessary time and authority to perform their duties; and
(d) resources are made available to custodial staff to the extent necessary for them to adequately perform their duties.
(4) The responsible entity must also comply with paragraph (1)(c) and subsections (2) and (3) as if any sub-custodian were the custodian except to the extent that, in relation to assets outside of this jurisdiction, it is not reasonably practicable for the responsible entity to do all things necessary to ensure that the sub-custodian does a particular thing.
Note:  For example, if the custodian engaged a sub-custodian, the responsible entity would need to do all things necessary to ensure that the